Answer only ONE of the prompts below based on Cjapter 6 of the textbook. Then, reply to a classmate.
. What is insider trading and why is it usually regarded as a form of white-collar crime?
2. Discuss the various approaches to eliminating or reducing insider trading.
3. Why is the rational choice cost/benefit approach more useful in determining the motivation for white-collar crime than it is for street crime?
4. Examine the federal statute on insider trading. Does the language of the statute itself help explain why Martha Stewart was not charged with insider trading?
Classmate’s Response: Juan Romero
1.)Insider trading is when anyone who receives information about a company that is not publicly available uses that information for their benefit. The reason why insider trading is regarded as a form of white-collar crime is that it fits the factors needed when talking about white-collar crime. Insider trading is a non-violent crime that requires someone within the business to possess the information which can be any high-level worker or board member. Insider trading also has the motive which is for the person who has the information to be able to personally gain from the information regardless of what it means for the company. Insider trading in other words is another way for the rich to get richer all from behind their office doors.
