Insider trading

An individual who has privileged knowledge of the sales of a publicly traded company is an insider. Usually, these are the top five or six executives of a company. Often, these same individuals have majority ownership of the company. When they buy or sell some of their shares into a depressed or inflated market so as to increase their share of ownership or increase their personal income, they are engaging in insider trading. Such insider trading harms other investors and is usually considered illegal insider trading.

Theoretical insider trading

Def. buying "or selling securities of a publicly held company by a person who has privileged access to information concerning the company's financial condition or plans"[1] is called insider trading.

Monopolistic practices

This two-page illustration portrays the powerful railroad monopoly as an octopus, with its many tentacles controlling such financial interests as the elite of Nob Hill, farmers, lumber interests, shipping, fruit growers, stage lines, mining, and the wine industry. Credit: G. Frederick Keller.

Monopolistic practices are actions that reduce the fair market competition between enterprises or entrepreneurs.

Original research

Hypothesis:

  1. Insider trading by the top five or six chief executives who own a publicly-traded company should only be allowed with the company itself.

See also

References

  1. ↑ "insider trading, In: Wiktionary". San Francisco, California: Wikimedia Foundation, Inc. 23 December 2013. Retrieved 2014-06-09.

Further reading

External links

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