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Finance: What are Insider Trading And the Securities Fraud Enforcement Act Of 1988? 11 Views

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Description:

What is insider trading and the Securities Fraud Enforcement Act of 1988? It's nothing too complicated, if this minute long video is any indication.

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Transcript

00:00
Finance a la shmoop what is insider trading and the securities fraud
00:06
Enforcement Act of 1988? all right well the Securities and Exchange Act of 1934
00:12
aka the 34 Act made it formally illegal to use inside information in trading
00:20
stocks amazingly that used to not be illegal or at least not explicitly so [People gambling]
00:26
and it wasn't enforced investing was well a clubby white man's insiders gig

00:31
and the boys took care of the boys well since people could make a lot of
00:35
money with insider information and thought they wouldn't get caught like [Boy peeing at a urinal]
00:39
well who's gonna know that I overheard the CEO of big company talking about a
00:45
merger in a Denny's washroom you know some folks pretty much ignored
00:49
the law well the 1988 law was basically Congress saying you guys were really [Congressman discussing the 1988 law]
00:54
serious about this so this new legislation added some hefty penalties
00:59
if you get caught as an inside trader people still trade on insider
01:03
information though and they still get caught and they go to jail and they lose [Jail door closes on man]
01:07
everything they have so he's got to realize some of us were just born to be
01:12
bad...
Full Transcript