R. Foster Winans: The Corruptible Columns

Thesis: Goodman Brown’s state of mind between good and evil could have been caused by a combination of Puritanism obsession with the devil, its resemblance, and other prejudices such as ergot poisoning.

at Schwab and that Castro acted upon protected company data lists to gain an unfair competitive

When assessing the economic damage to due to Paul Thayer and those that he tipped off about the acquisition of Campbell Taggart, it should be noted that some argue that this kind of insider trading circulates information and forces the stock to its “true value.” If we assume this argument to be flawed, then part of Anheuser-Busch stock dip after the announcement was due to the insider trading and the fact Anheuser-Busch probably paid more to acquire its target. Thayer and his friends trade the Campbell stock for nearly a month before any public announcement of the merger. On July 27 nearly half the volume was insider volume controlled by those individuals who were in violation of rule 14(e)-3 (See exhibit 2). The increased volume might

The chapter begins with the author, Thomas C. Foster, describing a hypothetical situation about a sixteen year old boy that he calls “Kip”. Foster continues on, outlining Kip’s journey to the A&P; Kip suffers through various trials such as an encounter with a German shepherd and seeing his dream girl with his nemesis. When the girl, Karen, sees Kip, she repeatedly laughs while Kip buys a loaf of bread. He then decides to lie about his age and join the military, regardless of the consequences. After concluding the hypothetical situation, Foster declares that Kip’s entire trip to the store was a quest. Foster refutes any possible dissenters by introducing an analogy comparing different aspects of the Kip’s journey to a “real quest”; he

Even though the information about PIPEs was material inside information, Mark Cuban was not accused as traditional insider information. To qualify as traditional insider trading, there must involve true insiders buying or selling the company’s stock based on material inside information.

The first grey area was Goldman Sachs using a technique called “layering”. Goldman would start a company and used their own money to buy 90% of the shares. The public would see how the stocks were selling so quickly and wanted a piece of the pie. The public were unaware that Goldman was buying their own stocks and then continuously increasing the price of the stock and selling it back at the higher price. Goldman saw how well this was working and decided to continue with this practice. He started new companies and followed the same formula as before, making bags of money, while investors had no idea

Greg Lippmann, a Deustche Bank trader found out about Burry’s deals and was quick to short the market as well. Steve Eisman and his team found out about the short accidentally by a call to a wrong number. They were money managers at FrontPoint Partners when Greg Lippmann called to try to

The story of Young Goodman Brown by Nathaniel Hawthorne occurs in the 1600’s and takes place in Salem, a town located in the northeastern side of Boston, in the Massachusetts Bay Colony that was established by the Puritan settlers. Bartleby the Scrivener, by Herman Melville, is set in New York in 1853 in a law office staffed with peculiar men. Both stories have some prejudice aspects. The definition of prejudice is “preconceived opinion that is not based on reason or actual experience” (“Prejudice”). In Young Goodman brown the issues of prejudice center around the preconceived ideas of evil and witches. Young Goodman Brown is allegorical because it is about a man who is put

““The name of the game, moving money from your clients pocket to your pocket”, Mark stated. “But if you can make your clients money at the same time it’s advantageous to everyone, correct?” “No, Mark replied…Okay, first rule of Wall Street-nobody and I don’t care if you are Warren Buffet or Jimmy Buffet- knows if a stock is going up, down or sideways, least of all stock brokers. But we have to pretend we know.”” (8)

Insider dealing has been affecting the efficiency of stock markets in different places like United States, United Kingdom and Australia. Hong Kong is of no exception. Basically, insider dealing refers to the trading of a corporation’s stock or other securities by individual with potential access to non-public information of the company. The law of insider dealing in Hong Kong provides a much more detailed definition and is very comprehensive. However, when it comes to enforcement, it seems not very effective. In the following, the law of insider dealing in Hong Kong will be summarized. After analyzing the comprehensiveness of the law, the underlying reasons of the difficulty in enforcement will be identified. Some

For this assignment, use the Internet to research high-risk investment brokerage firms that have been indicted or convicted of ethical violations to provide insight and understanding of this market segment.

S.1043A “prohibits anyone in possession of non-public, price sensitive information from dealing in, or engaging others to deal in, the shares of a company” (text). After Patricia gained non-public, price sensitive information about SEPL’s intentions to buy a large amount of shares in FPPL, she immediately told her sister and engaged her in buying shares in

Hiding or divulging information: Goldman bet against their clients several times. They knew material information on certain investment; however, they never communicated that to their clients because they were making money off them.

For example, Manna (1966) states that insider trading should be allowed because insider trading is the most effective way to compensate to insider to generate new economic information in firm. Hirshleifer() states that for insider, good information is as good as bad information to make profit but this profit may not be related to economic contribution of insiders in corporate. Proponents of insider trading suggest (Carlton and Fischel (1983) that insiders are the most informative member in the market, and by trading, they bring new information to the markets and causing prices to change toward their true value and, therefore, promoting the optimal allocation of resources. On the other hand, Scholars (Benabou and Laroqu, 1992) say that insider trading may provide incentive to corporate insiders either to delay the announcement of price-sensitive information to public or to prevent to release price sensitive information, which in turn makes stock prices less informative. However, Georgakopoulos (1993) argues that restriction on insider trading may have little adverse impact on market efficiency but it reduces the cost of transaction that burdens on uninformed traders

Corporate directors and officers often obtain advance inside information because of their positions. Sometimes the information can affect the future market value of the corporate stock. It is obvious that their positions can give them a trading advantage over the general public and shareholders. Often times the insider is the company manager; other times it is the company's lawyer, investment banker, or even the printer of the company's financial statement. Anyone who has knowledge before public dissemination of that information stands to benefit from good news or bad news.