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Inside Trading Project

Inside Trading Project. Inside Trading. What is inside trading: T he trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. Wall Street Reference

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Inside Trading Project

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  1. Inside Trading Project

  2. Inside Trading • What is inside trading: • The trading of a corporation's stock or other securities (e.g. bonds or stock options) by individuals with potential access to non-public information about the company. • Wall Street Reference • Bud’s father worked for Bluestar Airlines. • Bud knew that Bluestar was about to win a big lawsuit that favored the company. • Bud told Gekko about this info and they purchased the stock before the lawsuit became public information • They made millions of dollars and became the majority shareholders for the company. • As majority shareholders, they were able to make the executive decisions about the company which is why Gekko wanted to liquidate the company and sell it off.

  3. Inside Trading • Why is inside trading bad? • insider trading is like making money betting on a boxing match you helped "fix." • If the public believed insider trading were tolerated, companies would not be able to raise capital through public stock offerings. The public would not want to invest in a game they couldn't win.

  4. Famous Examples of Inside Trading • http://abcnews.go.com/Business/galleon-notorious-insider-trading-scandals/story?id=14821122#1

  5. Directions • Slides 1-2: Define inside trading in your own words • What is it, why is it bad, etc. • Slides 3-5: Describe the person or people you will be discussing • Background information on the person • College, business experience, upbringing, etc. • Company info • Net worth, competitors, industry, etc. • Slides 6-10: Describe the scandal in detail and offer any personal insight

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