ShmoopTube

Where Monty Python meets your 10th grade teacher.

Search Thousands of Shmoop Videos


Incorporation Videos 104 videos

Finance: What is a Dissident Director?
4 Views

What is a Dissident Director? The Board of Directors of a company usually reaches a consensus the majority of the time in order to decide on polici...

Finance: What is a Safe Harbor?
3 Views

"Safe harbor" refers to the notion that, if you follow a basic set of rules, you cannot be found guilty of a crime or shady dealings.

Finance: What is Contingent Liability?
4 Views

What is Contingent Liability? Contingent liability refers to a possible liability in the future contingent upon some other event being the trigger....

See All

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


Share It!


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.

Language:
English Language

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...

Related Videos

Finance: What is Bankruptcy?
260 Views

What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...

GED Social Studies 1.1 Civics and Government
39794 Views

GED Social Studies 1.1 Civics and Government

Fake News
11938 Views

How do you tell fake news from real news?

Finance: What is a Dividend?
1777 Views

What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...

Finance: How Are Risks and Rewards Related?
589 Views

How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...