Investigations and Prosecutions Illegal Insider Trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in...

Running Head: ILLEGAL INSIDER TRADING    1
ILLEGAL INSIDER TRADING         3
ILLEGAL INSIDER TRADING AND THE PROSECUTION RELATED TO ILLEGAL TRADING
Table of Contents
Introduction    3
Violations of Insider Trading    3
Criminal Investigation and Prosecution in Illegal Insider Trading    4
Statutes of Federal Institution    6
Reflection    6
References    8
Introduction
There are different kinds of financial and monetary transactions thattake place in the market. Insider trading is one such kind of financial transaction, which refers to the trading the stocks of public company or other similar types of securities, such as bonds or stocks options. These bonds are based on the materials, non-public information regarding a company and the vital information of a company’s operations. However, there occurs many situations, where there is a problem regarding insider trading. In this assignment, the discussion will be made regarding the illegal insider trading and the process of investigation to avoid any illegal activities and the process to prosecute any violators. In this assignment the discussion will be made on the role of federal statue regarding the investigation and prosecution for the illegal insider trading. In this assignment the case of Martha Stewart will be also discussed, as how she had committed the illegal inside trading, and how she was prosecuted.
Violations of Insider Trading
Illegal insider trading isbuying or selling the security or stocks. This is a breach of the fiduciary duty orother kind of relationship of trust and confidence, which is based on the materials and the non-public. Ahern (2017) has discussed that one of the most common trading violations that takes place, is tipping off to certain securities, some trading activities done by a person and certain misappropriate information that is circulated in the market. According to the U.S. Securities and Exchange Commission (2021), there are different kinds of cases that can take place:
· The insider trading can take place through the corporate officers, directors and the employees of the organization, who are involved in the company’s securities after becoming aware of their importance and the developments, which are purely confidential.
· There is involvement of the friends, business associates and the family members, who provide tips to such officers or the directors and sometimes employees, who make trading of the securities after receiving the information.
· There is also the involvement of the employees in the law section, banking section and the printing firms, who have traded the securities based on the information they have acquired regarding the company they have received the information.
· There is government employees’involvement, which has made the trade, based on the confidential information they have acquired being working with the government sector.
· There are many political...