"Illegal Insider Trading, An Unfair Practice"
Barry Bonds has been in the national spotlight for quite some time now fielding questions regarding his possible use of Performance Enhancing Drugs. However, while everyone is worried and occupied about whether his accomplishments are legitimate or not, millions of dollars are stolen annually in the form of insider trading, yet the public does not seem to take notice Be it the popularity of professional sports or the lack of education the public has regarding the financial industry, this crime of insider trading is widely ignored while sporting events are magnified daily.
Insider trading can be legal. For example, a corporate office buying and selling stock in his own company is legal insider trading, as long as it is reported to the Securities Exchange Commision (SEC). "Illegal insider trading refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security( SEC site). Trading on confidential information from within the organization one works to tips given from associates of other firms and companies to buy and sell stock is the most obvious form of insider trading.
The term "unfair practice" comes to mind when people think of Barry Bonds using Performance Enhancing Drugs because he has an advantage others do not. The same goes for illegal insider trading. Receiving information that is not available to the rest of the public and using it to your advantage is just as "unfair" as Bonds with steroids. Call it Performance Enhancing Information if you will, because your performance in the market will certainly be ...