Why Prosecuting Insider Trading Is So Problematic

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Published 2023-08-10
Insider trading is a type of market abuse when an advantageous trade is made based on material nonpublic information. The issue is there’s not a specific law defining what insider trading is, which makes it difficult to prosecute cases as they arise. Additionally, a major component of prosecuting a case is proving intent, which requires a lot of evidence to support the claim. Watch the video above to learn more about what insider trading is and why it’s so difficult to stop.

Chapters:
00:00 — Introduction
01:22 — Defining insider trading
03:19 — Prosecuting insider trading
07:41 — Who gets investigated?
10:27 — Activist investors

Produced by: Charlotte Morabito
Additional Reporting by: Mary Hanan, Meghan Lisson
Camera by: Junghun Park, Gerard Miller, Marco Mastrorilli, Bob Briscoe
Audio by: Paul Alfe, Francesco Lo Cascio, Juan Roche
Edited by: Nora Rappaport
Animation: Mallory Brangan
Supervising Producer: Lindsey Jacobson

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Why Prosecuting Insider Trading Is So Problematic

All Comments (21)
  • politicians will never want to stop insider trading because politicians are the biggest winners when it comes down to insider trading. there's a lot of information left out of this video.
  • @fromdusktodawn509
    Why is insider trading so hard to stop? Because everyone at the federal reserve and White House does it.
  • Murder is hard to stop. Anyone can murder. The difference is that we prosecute murderers instead of giving them a fine that’s 1/1000th of their net worth.
  • @BenjaminAchak
    Hey guys, I know nothing about the market and I'm looking to invest, any help? As well who can I reach out to?
  • @wsxokm5
    I wonder why Congress has never defined insider training... 🤔
  • @lukeben1596
    Most people venture into crypto to be a millionaire meanwhile I just want to be debt free
  • @strechinpick
    How are you not prosecuting senators and congressman? This needs to happen. Makes me freaking sick!
  • @burtstineman449
    I would guess it’s so hard to prosecute because the people doing the prosecuting are doing the inside training. The people make laws are all doing it as well.
  • @QQPP19
    I'm sure catching politicians was just as hard at it.
  • @panth5501
    "Why Prosecuting Insider Trading Is So Problematic" Simple answer, the politicians do it and they don't want it to be strictly stopped...
  • @kevinfernandez9999
    It's hard to prosecute because a lot of powerful people do it and nobody wants to hurt their feelings.
  • @cdoremus99
    Its hard to stop because it requires american politicians to have integrity
  • @Dee--Jay
    I have uncle in my family who's retired who recently made around 750k because he heard his friend that works that moved off and got a job at a company in North Carolina. The friend said the company was coming out with certain kind of product. Not really thinking about it but my uncle took initiative and thought it would be a good deal. This was after the stock market crash so he put $50,000 into it from his 401k and he sold it last year for a profit of $748,000
  • @erandeser5830
    The reason insider trading is difficult because lawmakers know how to protect themselves.
  • @jarednovel
    Calling someone the Oracle of Omaha is a big joke when we know he is privy to the insider information.
  • @redshirt256
    The subtitles on this video are not separated into shorter segments, at 1:36 a huge blob of text covers the screen for example
  • @ambition112
    0:00: 📈 Insider trading is difficult to prove and prosecute, with no clear definition, and the SEC often focuses on smaller cases rather than big offenders.
    3:43: 💼 Insider trading can be prosecuted through civil or criminal law, with the SEC handling civil litigation and the DOJ handling criminal cases.
    6:41: 🔍 Justin Paperny, a former securities fraud convict, now helps guide those accused of white collar crimes through investigations, sharing his experience and insights.
    8:46: 💰 Insider trading enforcement actions often target defendants who can't afford high-powered representation, but high-profile individuals have also been successfully prosecuted.
    11:45: 📈 The rise of meme stocks and social media influencers has raised concerns about market manipulation and the influence of retail investors.
    Recap by Tammy AI
  • @yomajo
    Why SEC needs funding? Align incentives. 10% of won litigations against wrongdoers on wall street goes to SEC budget. 1% of that gets directly added to SEC employees bonuses. Next?