Group Activity Unit 6 financial management

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Group Activity Unit 6 Financial Management Task For this group activity, you and your group will have three weeks to complete a presentation based on the following case study and research you will conduct on the regulatory rules applying to insider trading. Although you and your team may choose any presentation application or software, Microsoft PowerPoint is suggested for this activity. Research and Scenario First, visit the following websites on insider trading:  Securities and Exchange Commission (SEC) website regarding insider trading.  SEC enforcement actions (insider trading cases) These websites will help you become familiar with the general basics of the regulatory rules applying to insider trading. You are not expected to become an expert on this topic. Apply these rules to the facts of this very brief case: Someone you know has knowledge of an impending merger between two companies. The combination of the two firms will certainly change the market dynamics of the industry. Moreover, owners of stock in both companies will greatly benefit once the news of the merger is publicly announced. Project Requirements Your presentation must consist of 6 to 7 slides that are clear, legible and address the following:  Discuss the general basics of the regulatory rules applying to insider trading and its implications and address the following: 1. Legal implications 2. Ethical implications 3. Economic-social implications  You must include a title slide in addition to the six to seven slides. The title page must include: 1. The title of the project 2. The names of the group members 3. The area where the team member provided initiative (contributed to the project).

 Each slide will include a bulleted list highlighting important aspects of your research. 1. Details of your research and citations will be presented in the notes section of each slide in the presentation. Collaboration Tools Your group has been provided with two areas for group work:  A discussion forum area that allows access only to your group members. Members of other groups cannot access your group's discussion forum—groups can only access their own area. To collaborate with your group, click on the Group Forum area and use the drop-down menu and select your group. Be sure to contact members of your group this week to begin collaborating and deciding how the group will accomplish its assigned task. Inclusion and collaboration are important factors for success.  A wiki area allows you to collaborate on a dynamic document where you can share your research with the group. Use this area to share your ideas with the group or enhance exiting ideas from team members. Note: if you do not use the dropdown menu to select your group and decide to post a message, your post will be viewed by all the students in the course. Again, these two work areas are provided; however, groups are free to use other collaboration and/or productivity tools available on the internet. The only caveat is that each individual group member must be able to submit the final presentation to the group project submission area in Unit 8. There is no voting out any group member, and all members must agree on using anything outside this course other than researching. Any group member can contact the instructor regarding non-compliance. Inclusion of all member voices is required. Your final presentation is due in Unit 8 and you will have the next three units to work together to complete the project. Once you’re finished, each person in your group must post a copy of the final presentation in the Group Activity Submission area. All file names and content must be identical among group members. Presentations will be assessed on both content (how well the legal, ethical and economic-social issues are addressed), as well as organization and grammar. Your presentation content must look professional and adhere to the standard presentation format. Therefore, check all content for grammar, spelling and to ensure that you have properly cited all sources used in the creation of the presentation using APA format. In other words, although your notes are cited, the slides are not cited. As a group, keep in mind the purpose of a presentation as it applies to an audience. Here are a few resources on creating a dynamic presentation: 7 Design Tips on how to Create an Effective, Beautiful, PowerPoint Presentation

Tips for Creating and Delivering an Effective Presentation Your presentation will be assessed using the BUS 5111 Group Activity Presentation rubric . Response Introduction Insider trading can be described as the process of an exchange in a public corporation's stock by an internal party or an individual who has private/inside, material information about that stock for any reason either illegally or legally depending on when the insider makes the trade. Additionally, Insider trading can be viewed as an illegal act when a security is bought or sold in breach of a fiduciary duty or other relationship of trust and confidence while in possession of material, non-public information (SEC, n.d.). Illegal Insider trading ensures that the material information used or shared is still non-public and derives with harsh consequences including both potential fines and jail time. In this Paper, we examine the general basics of the regulatory rules applying to insider trading as well as its legal, ethical and economic- social implications upon completion of reading the two articles entitled “ Securities and Exchange Commission (SEC) website regarding insider trading and SEC enforcement actions (insider trading cases). Bigwig trading can be described as the process of an exchange in a public pot's stock by an internal party or an existent who has private/ inside, material information about that stock for any reason either immorally or fairly depending on when the bigwig makes the trade. also, Bigwig trading can be viewed as an illegal act when a security is bought or vended in breach of a fiduciary duty or other relationship of trust and confidence while in possession of material,non- public information( SEC,n.d.). Illegal Bigwig trading ensures that the material information used or participated is stillnon-public and derives with harsh consequences including both implicit forfeitures and jail time. In this Paper, we examine the general basics of the nonsupervisory rules applying to bigwig trading as well as its legal, ethical and profitable-social counteraccusations upon completion of reading the two papers entitled “ Securities and Exchange Commission( SEC) website regarding bigwig trading and SEC enforcement conduct( bigwig trading cases).

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Insider trading: what is it? The act of purchasing or selling a security by a person with access to important, nonpublic information about the security is known as insider trading. When a trader utilizes material, nonpublic knowledge to make trading choices, it is known as illegal insider trading. What makes insider trading prohibited or illegal ? Insider trading is viewed or observed as illegal because it offers the trader an unfair advantage over other investors who do not have access to the significant, nonpublic information, insider trading is prohibited. What are the negative effects that are viewed as unlawful for insider trading? Generally, in any business or trading aspect there is some form of Illegal act. Therefore, insider trading has both civil and criminal repercussions. These include;  Disgorgement of illegally obtained interest, civil economic fines, and injunctions are among civil consequences for unlawful insider trading.  Insider trading is a crime that transfers both penalties and jail time as possible punishments. What are the fundamental elements of the legal guidelines governing insider trading? There are various elements that are considered to be legal guidelines, the following are the fundamental elements of the regulatory laws governing insider trading:  The entity or person should be a member of the company's insider group.  The individual must have admission to confidential, commercial and private information.  The person is demanded to consume the appropriate, nonpublic knowledge, communication and intelligence while receiving trading choices. What consequences does insider trading have legally? Insider trading has both civil and criminal legal consequences. Disgorgement of criminally acquired profits, civil economic charges, and restrictions are among civil outcomes for unlawful insider trading. Additionally, Insider trading is a crime that transfers both penalties and detention time as possible punishments.

What ethical repercussions might insider trading have? Insider trading has ethical repercussions since it is seen as a type of fraud. The determined whose stocks are being operated as well as other stakeholders who do not have admission to the influential, nonpublic knowledge or intelligence may experience as a result of insider trading. What are insider trading's economic and societal repercussions? There are repercussions in every aspect whenever trading is involved, Insider trading has undesirable financial and social impacts for the secure whose shares are operated as well as for other stakeholders who do not have admittance to the appropriate, nonpublic information. The public's intuition of the equality of the protections markets may also be wedged by insider trading. ADDITIONAL INFORMATION Answer & Explanation Solved by verified expert legal implication on insider trading Regulators and legislators have a responsibility to minimize the damage inflicted by insider trading. Many people have argued that insider trading results in capital market imperfections such as mispricing and squandered investment opportunities. There is, however, a lack of systematic study on the impact of regulations in this area. More than one study has examined the impact of changing insider trading laws on the competitiveness and frequency of insider trading. Insider trading was examined by academics in light of three recent high-profile US instances. If anything, these three cases reflect a desire to apply legislation that has not been implemented since it was enacted, according to the author (Henning, 2018). Interestingly, none of the examples indicated a significant drop in productivity or volume sometimes during. According to Woody (2020), even if the legislative changes made the institution more limited, they were still concentrated on the most extreme cases and so had little impact. It was during this period that Henning (2018), studied the impact of legislative and case law developments on insider trading and the penalties for utilization of material non-public knowledge. On the basis of profitability and volume alone, he concluded that the regulatory changes had been ineffective in preventing insider trading. Before mergers, Park (2018) looked at insider trading and found patterns and

price runs that were similar to those seen before current mergers. They conclude that insider trading restrictions have been ineffective in preventing insider trading, although they believe that this may be due to higher in experienced professionals supplanting pure insiders (Woody, 2020). The results of studies exploring the impact of regulatory change are mixed. Previous studies have concentrated on the economics and frequency of insider trading revealed no evidence of significant market adjustment. Studies looking at the impact on capital costs, the information used to make trading decisions, and analyst follow-up indicated significant shifts in the market. Technology advances in recognizing insider trading may have had an effect on insider conduct, or limitations may have failed to prevent prosperous insider trading but had a significant impact in other areas. However, in order to determine the role rules play in controlling and minimizing the negative consequences of insider trading, more market research is required. Research in other markets is crucial to dispelling the notion that the United States' lengthy history of police insider trading renders its responses dysfunctional of other markets (Woody, 2020). Ethical implications on insider trading In the economic aspect of trading on information asymmetries, philosophers and legal professionals have debated for decades whether insider trading is moral. More than 2,000 years ago, in a constitutional interpretation classic that has largely been lost to modern scholarship, Cicero raised the issue. When it comes to insider trading, Cicero proposed two scenarios in order to examine apparent contradictions between morality and expediency. Think of a good businessman delivering grain from Alexandria to Rhodes, where a hunger is rampant. If the Rhodians discover of the other ships carrying grain to Rhodes, demand for the merchant's grain will plummet (Henning, 2018). Another common occurrence is the merchant who sells a building that has a fault that they don't want you to know about. Suppose an honest person lists a house on the market on the real estate market with "certain unpleasant qualities that he is knowledgeable of but that almost no one is aware of," like rodents in the guestrooms or poor construction. Whether or whether the seller's transaction is reasonable or dishonorable depends on whether or not the buyer is informed of these facts before the house is sold to them for a very reasonable price (Park, 2018). Step-by-step explanation Economic-social implications When you go deeper into Mr. Lawson's moral dilemmas, you find that they also raise economic concerns. Economics, as per Lloyd Cohen, is not only compatible with our sense of right and wrong, but also with Kant's fundamentally altruistic notion that it is unacceptable to act in a manner which would be disagreeable were it to be common practice. Nearly everyone can see what I'm getting at. For example, if an inalienable rights analysis assigned property rights to others who were not the most highly valued user of a given asset, that people might sell the investment to the individual who valued it the most. In this scenario, exchange is permitted. When selecting how beginning entitlements should be distributed, severe ethical issues arise. A system of transfer of ownership mutually acceptable agreed-upon trade is ethically indefensible once this is achieved (Park, 2018).

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A typical economic argument opposing insider trading seems to be that investors will leave the stock market if they believe other market participants have an unfair edge in information. This is a plausible argument, but no research has been done to verify it. Observations made by chance haven't corroborated this theory either. Insider trading was never as frequent as it has become in the last twenty-five years, so we can't say how investors would behave if it were. Nevertheless, stock markets ran smoothly for a long time before claims of insider trading became so common. In countries where insider trading has been viewed more favorably than in the United States, the markets appear to function well. The highly publicized insider trading trials of 1986, particularly the Dennis Levine cases, were widely regarded as proof of widespread insider trading, but they did not appear to have had a substantial long-term influence on financial investment, which continued to rise (Park, 2018). Ambivalence with insider trading was not extensively debated as a factor in the October 1987 market crisis. Insider trading is unlikely to be the primary reason why investors exit the market. In the end, the proposition that investors will indeed flee an apparent unfair market seems to assume that investment opportunities exist in markets where documentation is more easily accessible and evenly distributed, in addition to markets with enormous liquidity and associated advantages of the financial market Stock exchanges should be particularly concerned about market abandonment. Inquiring into how far the platforms have gone to eliminate insider trading, including "establishment candidate" transactions undertaken by financial institutions in preparation of the price influence on customer orders, according to their own volition instead of under government coercion, would be an interesting exercise. Given its limited policing capabilities, any recommendations would have to be evaluated based on whether governmental efforts would be worthwhile for an exchange (Henning, 2018). References Henning, P. J. (2018). Making up insider trading law as you go. Wash. UJL & Pol'y , 56 , 101. Park, J. J. (2018). Insider trading and the integrity of mandatory disclosure. Wis. L. REv. , 1133. Woody, K. E. (2020). The New Insider Trading. Ariz. St. LJ , 52 , 594. Show less Citations: https://www.investopedia.com/terms/i/insidertrading.asp https://www.investopedia.com/ask/answers/042415/what-penalties-result- illegal-insider-trading.asp Step-by-step explanation

What exactly does "insider trading" entail? When a person who has access to substantial, nonpublic information about a security makes a purchase or sale of that security, this behavior is referred to as insider trading. When a trader makes trading choices based on substantial knowledge that is not publicly available, this is considered illegal insider trading. Why is it against the law to engage in insider trading? Insider trading is against the law since it offers the trader an unfair advantage over other investors who do not have access to the relevant, nonpublic information. Other investors are disadvantaged as a result of this. What are the repercussions of illegally trading on inside information? Trading on non-public information illegally may have both civil and criminal repercussions. In the case of illicit insider trading, civil sanctions might include the return of ill-gotten earnings, the imposition of civil monetary fines, and the issuance of injunctions. The crime of unlawful insider trading carries with it the possibility of both monetary sanctions and jail time. What are the most fundamental aspects of the regulatory guidelines that apply to trading on inside information? The following is a rundown of the essential fundamentals of the regulatory requirements that apply to insider trading: -The individual in issue must have an insider position inside the firm in question. -The individual is required to have access to significant, nonpublic information.

-In order to make financial choices, the individual is required to take into account material and nonpublic facts. What are the repercussions of trading on inside information from a company? Insider trading may have both civil and criminal repercussions, depending on the circumstances. In the case of illicit insider trading, civil sanctions might include the return of ill-gotten earnings, the imposition of civil monetary fines, and the issuance of injunctions. The crime of unlawful insider trading carries with it the possibility of both monetary sanctions and jail time. What kind of moral repercussions does trading on inside information have? The fact that insider trading is often regarded as a kind of fraud is one of the practices that has ethical repercussions. Both the corporation whose stocks are being traded and other investors who do not have access to the relevant, nonpublic information might suffer losses as a result of illegal insider trading. What are the repercussions, both economically and socially, of engaging in insider trading? The economic and social repercussions of engaging in insider trading include the potential for damage to be caused to the firm whose stocks are being sold, as well as to other investors who are unable to get access to the relevant, nonpublic information.

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Trading on the inside may also have an effect on how the general public views the integrity of the financial markets. Citations: https://www.investopedia.com/terms/i/insidertrading.asp https://www.sec.gov/answers/insidertrading.htm https://www.investopedia.com/ask/answers/042415/what-penalties-result- illegal-insider-trading.asp Show less

Group Activity Unit 6 financial management

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