tutor discussion
Week 5 Discussion: Agency Regulation (No more than 300 words)
Discussion Prompt
Background and Resources
In 1934 Congress created the Securities & Exchange Commission (SEC) to regulate publicly traded stocks and securities. The SEC’s responsibilities cover a range of activities. Two types of violations found in SEC cases are: (1) spoofing and (2) insider trading.
Spoofing is a deceptive trading practice to manipulate the market whereby traders place fake orders to trick others into trading at either inflated or depressed prices, resulting in losses to the deceived purchasers and profits to the spoofing traders.
For further information see: spoofing
To find cases: CFTC Spoofing Cases
Insider trading is buying or selling on the basis of personal knowledge the trader has or acquires by benefit of a relationship not available or known to the general trading public (i.e. “insider” information). For further information and finding cases see:
insider trading [gov. website]
Why insider trading is so difficult to stop (CNBC 2023)[web]
SEC Case Listings [gov. website]
For this Discussion, research further, either spoofing or insider trading SEC violations.
In your research, find and share a case example no more than three (3) years old from this year that illustrates the practice you have selected. In your initial Discussion post include the following:
Briefly explain spoofing or insider trading (whichever one you have chosen) and why it is illegal (e.g., effect on business, society);
What is the specific statute and/or regulation violated by this conduct?
Identify the case you have selected and provide a link to the case;
Describe the violation illustrated by the case, e.g. Who are the parties? What did the violator(s) do that constituted spoofing or insider trading? Who was harmed by the violation?
State how the case was resolved, e.g., What happened to the violator(s)? What were the penalties levied against the violator(s), if any?
Do you believe the result is a just resolution of the violation? Why or why not?
Share any other thoughts you have on this topic.
