Stess And The Securities Indus

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use inside information to boast more profit.
The Securities and Exchange Commission (SEC) defines insiders as “any shareholder who holds in excess of five percent of a companies voting stock or any officer or director of a corporation or employee who has access to important corporate information” (McGee 219). This information can consist of future mergers, takeovers, pending lawsuits, etc. usually vital to the company's future stock value. On the basis of this information the insider puts in an order to buy or sell a block of stock. This alerts other traders to follow and once the information is made public the change is apparent. This kind of activity is perfectly legal and can actually benefit the market as a whole (McAdams 357). However, when an individual misappropriates information and uses it for their own personal gain it is illegal insider trading (McGee 220). This kind of transaction is what tempts lowly traders in the workplace and is sometimes used ...

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up through illicit trades to become one of the biggest “crooks” on Wall Street (Widder 5). Levine and Bud’s similar rationalization for his insider trading was that “everyone was doing it” (Widder 5). Both men also eventually get caught and go to jail. However, since coming out of jail Levine has reformed his ways and turned to writing and lecturing on business ethics using his own story to persuade others not to stray from what is right (Paltrow 4). His reform has set an example for others to follow.
Since quick money appeals to most everyone Wall Street firms have had to create countermeasures to deter employees from making bad decisions. The ...

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