Insider Trading Is Ugly, Unfair And Un American

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Tennessean (Op-ed): Insider trading is ugly, unfair and un-American Phoebe Venable, For The Tennessean 11:04 p.m. CST November 20, 2015 One might say that the spirit of America is fair play. That’s not to say that all’s fair in America; there’s much, of course, that’s not fair. What I mean is that as a nation we’re guided by an idea — formally outlined in our noble Constitution and practiced down to our playgrounds — that everyone has an equal shot. Regardless of color, creed or capital, you can make it. You can succeed. You can be happy. You can make a difference. You can even be president. The rules aren’t written to ensure that this happens. No, that’s going to require hard work, smarts and some luck, too. Rather, what the rules do is…show more content…
If they do, it’s fraud. That’s because a corporate insider is legally obligated to put shareholder interests before his or her own. This obligation or duty to the company can be imputed — a legal term for “assigned” — to another when an insider gives that person a tip based on material nonpublic information that’s likely to have an effect on the company’s stock price. What is material nonpublic information? Material information is anything that would be relevant to an investor making a decision to buy or sell stock. Nonpublic information is anything that hasn’t been disclosed to the general marketplace. Put them together and what you’ve got is unfair play. The blatant disregard of the rule and other players is cheating. Senator faces allegations Some of you may have read the recent Wall Street Journal story regarding Sen. Bob Corker’s previously undisclosed trades in the Chattanooga real-estate firm CBL & Associates. Those trades were incredibly lucrative — amounting to millions of dollars in gains for Corker and his family — and are with a company that the senator has decades of history with, both in business dealings and in campaign contributions from CBL executives. By Congressional ethics rules, Sen. Corker is supposed to disclose those trades. It’s alarming that a senator, particularly one who sits on the powerful Senate banking
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