Hello all... can you kindly explain both the term...i am know about insder dealing and organisations compliance issues...but .. lately i felt the terms got inter-related... by a friend......can you help me out here
2007-04-22 18:08:20 · 2 answers · asked by Anonymous in Business & Finance ➔ Corporations
Insider dealings can take on various meanings - one is embezzlement from stock holders, Execs staching money into their own pockets, robbing retirement funds, buyint of selling stock based on their inside info. etc. Unfortunately the temptations are too great and punishments too small to stop it.
Whistle Blowers are those inside who's conscious overtakes their business dealings and they rat the folks out that are doing the stealing. It is a very dangerous role and it takes a lot of guts. Similar to a snich in the mofia.
2007-04-22 18:22:11 · answer #1 · answered by maazungo 3 · 1⤊ 0⤋
Maybe you mean insider trading.
Often, senior management owns substantial amounts of a company stock.They are free to buy more, sell, whatever, just the same as any other stockholder, with ONE EXCEPTION.
A member of senior Mgt sometimes knows something which may influence the price of a company's stock. This could be something like the CEO of the co suddenly planning to retire, a lawsuit which the Co might have to take seriously, an unexpectedly good or bad earnings report for the quarter, a pending merger or acquisiton, etc.
If a stockholder knows about this and and he buys or sells ... the general public doesn't,,this is Insider Trading.
It is illegal and could put you in jail. So, what a co does is make tihs public by a press release or news conference. in fact, between 4 and 5 PM, Foxnews coverage devotes a lot of time to business news.
Once any news like this is made public, then both insiders and outsiders have the same advantage..
Does this help????????
2007-04-23 01:27:02 · answer #2 · answered by TedEx 7 · 0⤊ 0⤋