Insider trading

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BUS-340

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Feb 20, 2024

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Brandon Clabo College of Science in Hospitality Management Bus-340 Professor Patete 3/19/2023 INSIDER TRADING

I am not one for really getting into the stock market and worrying about things like Insider trading. The last time I fully watch the stock market was in 2011-2012. One reason I watch the Stock Market was to see if people really believed that the world would end in 2012. If people truly believed this, then they would dump their stocks and the stock prices would plumet. However, the stocks I was did not have any change, so I cannot confirm my theory. But we are here to talk about Insider trading and everyone’s “favorite” Speaker of the House, Nancy Pelosi, and her possible insider trading scandal. Insider trading Many people do not know what insider trading is or why it is illegal. The definition of insider trading is, “the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information”. So, the illegal side is when someone uses the information to their advantage and not allowing anyone else to know or use the information. So, I think that is there is a legal side to insider trading that the information would be available to all employees and thus anyone can use the insider information, and everyone knows about it. An example of insider trading is A person of top position at a publicly traded company is getting their haircut and accidently says something about the company’s finances. If anyone that heard them goes and trades on that information, then the SEC, Securities and Exchange Commission, can act if they do so desire. Thus, this is a 3 rd party acting on information that they know they should not take advantage of, but does so for personal gain. Even though it was accidental the “inside person” could get fined or arrested. How the SEC can tell that someone might be getting insider information is if they sell a large amount of stock right before the company goes under or stock prices plummet. Snoop Dogg’s best friend Martha Stewart is a prime example of someone that used insider trading for personal gain. “The scandal that would threaten Stewart’s career stemmed from her association with ImClone System, a biopharmaceutical company in which Stewart owned stock. Stewart sold 4,000 shares of ImClone stock on December 27, one day before the Food and Drug Administration refused to review ImClone System’s cancer drug Erbitux” (Harbert, 2023). “The Securities and Exchange Act of 1934 ("1934 Act," or "Exchange Act") primarily regulates transactions of securities in the secondary market. As such, the 1934 Act typically governs transactions which take place between parties which are not the original issuer, such as trades that retail investors execute through brokerage companies” (Legal, 2023).

Christian worldview Nancy Pelosi, the Devil herself, claims to be a Christian, but supports the two biggest things that the church is against, abortion and gay marriage. Not only has Nancy been accused of insider trading, but her Husband was constantly making stock trades while Nancy was the Speaker of the House of Representatives, using her connections to get hints on stocks. In 2008 Nancy was accused of insider trading because she bought a large amount of stock in Visa Inc. right before the company would report a significant strategy change that would cause the stock to rise to new heights. Now, Nancy was not charged with insider trading, but can almost guarantee that she and her husband were watch closely. “What this comes down to is a point of emphasis. If you think the appearance of impropriety is enough, then Pelosi has already blown herself up in the court of public opinion. If the specifics of how IPOs function and the actual way Pelosi has treated her investment is more important, that would make her guilty of being part of a piecemeal and highly subjective process, at worst, and not wielding undue influence” (Grant, 2011) . Moreover, the Book of scriptures instructs, “Anyone who has been stealing must steal no longer, but must work, doing something useful with their own hands, that they may have something to share with those in need” (Bible, 2023). Insider exchanging should have been visible as a type of misdirection, as it includes utilizing non-public data to settle on informed choices that others don't approach. While it is vitally important to get the laws of man and not misdirect someone for personal gain, the Christian worldview would call in one’s moral compass. If we cannot obey the law of man, then how can we expect to follow the law of the One true King? Conclusion In conclusion, Insider trading is not only against the law of man, but it also a sin according to the Bible. Not only that, but even the person that many people do not trust can be looped into a possible scandal simply because they have large amount of money and decided to invest a large amount of their money. Is it coincidence or just dumb luck, we may never know.

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References Bible gateway passage: Ephesians 4:28 - new international version . Bible Gateway. (n.d.). Retrieved March 20, 2023, from https://www.biblegateway.com/passage/? search=Ephesians+4%3A28&version=NIV Grant, D. (2011, November 15). Did Nancy Pelosi Profit from Visa stock purchases? The Christian Science Monitor. Retrieved March 20, 2023, from https://www.csmonitor.com/USA/Latest-News-Wires/2011/1115/Did-Nancy-Pelosi-profit- from-Visa-stock-purchases Harbert.auburn.edu Martha Stewart’Sinsidertrading . (n.d.). Retrieved March 20, 2023, from https://harbert.auburn.edu/binaries/documents/center-for-ethical-organizational-cultures/ cases/martha-stewart.pdf Legal Information Institute. (n.d.). Securities exchange act of 1934 . Legal Information Institute. Retrieved March 20, 2023, from https://www.law.cornell.edu/wex/securities_exchange_act_of_1934

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