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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.

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...

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