History Of Insider Trading Incident Of The Berkshire...

Introduction Insider trading is a very serious crime that occurs when information is shared about future decisions to get financial gain and then act upon it. Information of this caliber should be public knowledge so that everyone has an equal opportunity to make their investment decisions. An analogy would be if someone gained the answers to the final test and used them while everyone else has an unfair disadvantage. A rather large insider trading incident occurred with Raj Rajaratnam and Rajat Gupta. Gupta told Rajaratnam about a deal going on for preferred stock purchase for Goldman Sachs by the Berkshire Hathaway company. The information was given before any public announcement about the deal was made. This inside tip allowed Rajaratnam time to buy preferred stocks from Goldman Sachs and make a hefty profit from the information given to him. Rajaratnam and Gupta were eventually caught by the Federal Bureau of Investigation. The FBI had been recording their conversations over the telephone which were wiretapped. Rajaratnam and Gupta were both found guilty and received prison sentences. The dynamic duo were also required to pay a fine and as expected, both tried to appeal the court s decision. This is a prime example of a white collar crime versus being a street crime; no physical violence was used to commit the crime. Another way to differentiate a white collar crime is that both Rajaratnam and Gupta had successful careers on wall street, and both ended upShow MoreRelatedInternational Management67196 Words   |  269 PagesPublished by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright  © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions  © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Compan ies, Inc., including, but not limited to, in any network or otherRead MoreMerger and Acquisition: Current Issues115629 Words   |  463 Pagesrights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2007 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin’s Press, LLC and of Palgrave Macmillan Ltd. Macmillan ® is a registered trademark in the United States, UnitedRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesglOBalization! Does National Culture Affect Organizational Practices? 30 Point/Counterpoint Lost in Translation? 31 Questions for Review 32 Experiential Exercise Workforce Diversity 32 Ethical Dilemma Jekyll and Hyde 33 Case Incident 1 â€Å"Lessons for ‘Undercover’ Bosses† 34 Case Incident 2 Era of the Disposable Worker? 35 vii viii CONTENTS 2 2 The Individual Diversity in Organizations 39 Diversity 40 Demographic Characteristics of the U.S. Workforce 41 †¢ Levels of Diversity 42 †¢ DiscriminationRead MoreExploring Corporate Strategy - Case164366 Words   |  658 Pagessocial responsibility in the international development of a German company. Eurotunnel – clash of cultures threatens to derail Anglo–French rail link. Ryanair – competitive challenge and strategic choice in the budget airline industry. IKEA – quality and low prices at the Swedish furniture giant News Corporation – corporate logic and corporate management in a worldwide media business. CRH – impressive international growth of an Irish company driven from a ‘lean’ corporate centre. Numico – difficultiesRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 PagesHughes−Ginnett−Curphy The Art of M A: Merger/Acquisitions/Buyout Guide, Third Edition Reed−Lajoux and others . . . This book was printed on recycled paper. Management http://www.mhhe.com/primis/online/ Copyright  ©2005 by The McGraw−Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a databaseRead MoreCase Study148348 Words   |  594 Pages978-0-273-73552-6 (web) ï £ © Pearson Education Limited 2011 Lecturers adopting the main text are permitted to download and photocopy the manual as required. Pearson Education Limited Edinburgh Gate Harlow Essex CM20 2JE England and Associated Companies around the world. Visit us on the World Wide Web at: www.pearsoned.co.uk ---------------------------------This edition published 2011  © Pearson Education Limited 2011 The rights of Gerry Johnson, Richard Whittington and Kevan Scholes to be identified