Explain the general basics of the regulatory rules

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Reference no: EM132955480

Research and ScenarioSecurities and Exchange Commission (SEC) website regarding insider trading.

First, visit the following websites on insider trading:

  • SEC enforcement actions (insider trading cases)

These websites will help you become familiar with the general basics of the regulatory rules applying to insider trading. You are not expected to become an expert on this topic. Apply these rules to the facts of this very brief case:

  • Someone you know has knowledge of an impending merger between two companies. The combination of the two firms will certainly change the market dynamics of the industry. Moreover, owners of stock in both companies will greatly benefit once the news of the merger is publicly announced.

Problem 1: Discuss the general basics of the regulatory rules applying to insider trading and its implications and address the following:

  1. Legal implications
  2. Ethical implications
  3. Economic-social implications

Reference no: EM132955480

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