Insider trading is something that has been happening since the trade was first established. It’s best known to pass through the Stock Exchange, and all charges are legal. However, this type of trade in the interior-is governed by very specific laws and regulations.
And with the rise of internet technological developments in how we access and communicate information will continue to factor heavily in the commission of insider trading as well as the enforcement challenges and opportunities.
Aiding insider trading as the internet is one of the greatest sources of information to try to unravel the world of privileged information. This proves Insider Trading’s prevalence and that it’s something that’s not going to go away anytime soon.
Hackers can use computers to gain unauthorised access to data through the use of computer viruses. And corporate espionage of organised crime ring that infiltrates certain financial or legal institutions to systematically gain access to and exploits non-public information. To tainted cryptic company emails that insiders use to leak or tip off their information.
To important people being jailed for insider trading such as Martha Stewart in 2004 the famous TV personality and media owner was convicted for insider trading. In relation to her sale of ImClone stock. Based on the tip from ImClone’s CEO, Samuel Waksal, Martha Stewart made a selling order right before the ImClone’s stock price took a dive.
To the most recent case in South Africa of Coal of Africa’s Chief Operations Officer, Michiel Jakobus Bronn who was fined for insider trading. That took place even after he was instructed by the company’s chief executive officer not to trade shares. This has all brought into focus the prevalence of insider trading today.