Insider Trading - Insider Trading? Insider trading is...

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Insider Trading? Insider trading is defined by the SEC as “Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security”. Insider trading occurs when a person with confidential information about an issuer not available to the investing public uses that information when they trade with unaware traders. (SEC, 2000) In Manny’s case he without a doubt took part in insider trading if the information that he used to purchase these securities was obtained illegally. He knew before the public knew that Medivac was going to merge with Medtronic and used this information to better his financial wealth the question is how he got the information. The rationale is quite simple: any individual who has or could have access to confidential information and trades within a brief period of time is presumed to have traded on inside information. This case is very similar to the case with
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This note was uploaded on 08/30/2011 for the course BUSINESS 101 taught by Professor Wase during the Spring '11 term at Grantham.

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Insider Trading - Insider Trading? Insider trading is...

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