Insider Trading Is The Tip Of The Iceberg

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Executive Summary ABC News reported that Oliver Curtis, who is investment banker, was sentenced guilty of insider trading. Since 1973, there have only been 79 insider trading cases brought before the courts, in what lawyers said could just be the tip of the iceberg. Insider trading occurs where a person trades in shares or other financial products with possession of confidential information that is not available to public. Insider trading is also prohibited under Div. 3 of Pt. 7.10 of Corporations Act. Some of researches insisted that insider trading is necessary as a price accelerator and brings the price of securities to their proper level more quickly. However, most experts such as financial experts, or lawyers, insist that insider trading is harmful to market, small investors, or traders. The most common view of insider trading is harmful because it brings unfairness to the person, who do not have the inside information. With these arguments and Oliver Curtis case, this report define concept of Insider trading and relevant terms. After that, it will analyse advantageous side and disadvantageous side of insider trading, and then what benefit could get from insider trading. As a developed argument, this report will discuss why insider trading is harmful to market and need to be prohibited with Oliver Curtis case.

1. Introduction ABC News reported that Investment banker Oliver Curtis was found guilty of insider trading — the latest in a string of

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