Insider Trading What is insider trading? According to our text, insider trading is the sharing of inside information by directors or officers to buy or sell securities at a profit. This inside information can be material, nonpublic, or factual data that only they have access. While people who work at a company can buy and sell their own stock, unless they report it to the SEC and do not violate any fiduciary duties owed the actions they take are considered illegal (Sukys, 2019). There has been a lot of controversy on whether or not insider trading should be considered illegal or not. Most people are on the side of legalizing it. Personally, I do not believe it is a strictly black and white topic - with each situation comes different specific details that can change or effect the outcome of the action. In the defense of legalizing insider trading, one of the biggest proponents is because there is no victim in the crime. While it may be an uneven playing field, ther...
Fiduciary --- The Heart Of Agency Law Fiduciary relationships and agency law go hand in hand - without agency law there are no fiduciary relationships. We know from our text that agency law is a relationship between an agent (a person authorized to act on the behalf of another and subject to the other's control in dealing with third parties) and a principal (a person who authorizes an agent to act on her or his behalf and subject to her and his control). A key point to remember though is that all agency relationships are fiduciary relationships but not all fiduciary relationships are agency relationships (Sukys, 2019). As an agent, there are duties that they must uphold to their principal. These duties include care, loyalty, good faith, confidentiality, prudence, and disclosure (Cornell Law, n.d.). I have had many fiduciary relationships where I have been the agent at times and the principal at times. For work, because of my position, I am the agent for my company when ...