Ethics In Finance (Insider Trading)

Ethics In Finance (Insider Trading) - Ethics In Finance...

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Ethics In Finance Insider Trading
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Agenda Introduction The U.S. Canada Differences Other Countries and Cross-Border Issues Conclusions
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Introduction Definition Rationales Pros Cons Legislation has been tightened up in recent years (Why?) Two Elements: Disclosure and illegal trading. We will concentrate on the latter.
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The U.S. (The Rule) You cannot trade or tip if you have material non-public info., but this duty only arises if the trader or tipper is in a fiduciary relationship with the other side to the transaction.
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The U.S. (Fiduciary Duty) How is fiduciary duty defined in this context?
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The U.S. (Takeovers) The rules are different with respect to a takeover / tender offer. Misappropriation Theory. In this case, a fiduciary duty need not exist. Why would the rules be tougher in this instance?
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Canada (The Rule) If a person in a “specified relationship” with a firm “trades in securities of the firm” or “tips” while in possession of an “undisclosed material fact”, then that person may be liable for insider trading.
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Canada (Tipper and Tippee) There is no need that the person charged owe a fiduciary duty to the firm or the selling side.
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This note was uploaded on 04/23/2011 for the course ACCOUNTING 742 taught by Professor Adamscott during the Spring '11 term at Ryerson.

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Ethics In Finance (Insider Trading) - Ethics In Finance...

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