Insider Trading SEC (Securities and Exchange Commission) Violations Essay

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Insider trading is a business practice considered illegal in the US and most other counties. In essence, the term refers to the practice of trading the stocks of a public company while possessing exclusive information about said stock. For most cases, this information constitutes financial data that has not yet been made available to the public eye. This regulation exists in order to stop people for manipulating the market, as well as to ensure better standards of fairness in stock trading. The information can come from personal informants, connections, rumours or any other sources. Depending on when the trade is made, the practice can be either ruled as lawful or unlawful.

The US securities and exchange commission monitors cases of insider trading. According to the organization, a group of people has been recently charged for performing a scheme. Charges were pressed against 3 employees of Twilio, Inc. – a company based in San Francisco (SEC charges seven California residents in insider trading ring, 2022). The workers, along with a number of relatives and friends, have been able to benefit off of insider trading before the company posted its 2020 earnings, securing themselves at least $1 million in collective profits (SEC charges seven California residents in insider trading ring, 2022). According to the agency, the parties involved went behind the back of their employer and explicitly disobeyed a part of their contracts.

While the potential damages to the company involved were not mentioned, it can be assumed that the tech newcomer suffered financial setbacks. From an ethical point of view, the malicious actors worked within the framework of egoism, making their decision in the interest of themselves. All of the people involved are currently facing insider trading criminal charges, and further investigation is still underway (SEC charges seven California residents in insider trading ring, 2022). I believe that the current course of action and the decisions of the SEC are reasonable given the actions of the employees. They have violated the principles of their workplace, and engaged in informed insider trading – therefore, they must be treated according to the law. I believe that this resolution is just, because insider trading is harmful to both the economy and its other participants.

Reference

(2022). SEC.gov. Web.

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IvyPanda. (2023, September 24). Insider Trading SEC (Securities and Exchange Commission) Violations. https://ivypanda.com/essays/insider-trading-sec-securities-and-exchange-commission-violations/

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"Insider Trading SEC (Securities and Exchange Commission) Violations." IvyPanda, 24 Sept. 2023, ivypanda.com/essays/insider-trading-sec-securities-and-exchange-commission-violations/.

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IvyPanda. (2023) 'Insider Trading SEC (Securities and Exchange Commission) Violations'. 24 September.

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IvyPanda. 2023. "Insider Trading SEC (Securities and Exchange Commission) Violations." September 24, 2023. https://ivypanda.com/essays/insider-trading-sec-securities-and-exchange-commission-violations/.

1. IvyPanda. "Insider Trading SEC (Securities and Exchange Commission) Violations." September 24, 2023. https://ivypanda.com/essays/insider-trading-sec-securities-and-exchange-commission-violations/.


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IvyPanda. "Insider Trading SEC (Securities and Exchange Commission) Violations." September 24, 2023. https://ivypanda.com/essays/insider-trading-sec-securities-and-exchange-commission-violations/.

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