I picked this article because of how it relates to this class; insider trading is something we have discussed in past lectures. The Securities Exchange Act of 1934 was put into play to fule over and secure exchanges, brokers, dealers, etc. Within this act, rule number 10(b)-5 was put into play to prevent insider trading. Insider trading meaning purchases or sales occurred based on information that was not yet made public. Under this rule the information which affected the decision to conduct business must result in material to be found guilty of insider trading. Meaning, the business act had to be worth a significant loss or gain by either party involved. The main purpose of this rule was to prevent future forecasts of any business because predictions may affect buying or selling of shares and prediction may be inaccurate. Also both parties in this article are held liable under the misappropriation theory; the theory that holds the parties liable of their actions in these
I picked this article because of how it relates to this class; insider trading is something we have discussed in past lectures. The Securities Exchange Act of 1934 was put into play to fule over and secure exchanges, brokers, dealers, etc. Within this act, rule number 10(b)-5 was put into play to prevent insider trading. Insider trading meaning purchases or sales occurred based on information that was not yet made public. Under this rule the information which affected the decision to conduct business must result in material to be found guilty of insider trading. Meaning, the business act had to be worth a significant loss or gain by either party involved. The main purpose of this rule was to prevent future forecasts of any business because predictions may affect buying or selling of shares and prediction may be inaccurate. Also both parties in this article are held liable under the misappropriation theory; the theory that holds the parties liable of their actions in these