Case study Coursework Example | Topics and Well Written Essays - 500 words

Case study - Coursework ExampleRajaratnam had a continuous pattern of using insider job to make millions of dollars in profits. Typically insider trading occurs as one time tips that a person exploits. A smart insider trader will not pace his knowledge to earn money to stay off the radar of the Securities and Exchange Commission (SEC). Greed was the primary factor that led to the demise of Raj Rajaratnam.The pecuniary food market suffered a risk in regards to the wholeness of Wall Street as a whole. The SEC discovered during its rigorous investigation of the insider trading activities of Raj Rajaratnam that insider trading was to a greater extent widespread across America than what the authorities thought. Raj Rajaratnam had a network of informants he paid for the insider information he used. During the investigation 16 people were charged with financial crimes. It appears as if insider trading is more widespread than anyone ever thought. The reason insider trading is illegal is because it gives the recipient of the information an unfair advantage in comparison with the normal investor2. The stock market is supposed to have asymmetry and everyone should have the same information.It is my opinion that the judge was completely correct in the harsh sentence he gave out to Raj Rajaratnam. The judge said, His crimes and the scope of his crimes reflect a virus in our business culture that needs to be eradicated. Insider trading is no joke it hurts the integrity of the financial market, while at the same time giving an unethical trader an advantage which he can capitalize to receive a person-to-person benefit. Rich insider traders can affect the whole market by making huge buy or sell orders on a particular stock. The tremendous trade can alter the days price quotation on a stock. Raj Rajaratnam was a greedy dragon that wanted to get replete quick at the expense of the investor community. It is a bit sad that Raj Rajaratnam resorted to the illicit activity si nce he was already a millionaire and he did