Question: OUR MOTIVATION : ??? I have the problem below how would I write our motivation THE PROBLEM : Amit Dagar, who is a former employee
OUR MOTIVATION : ??? I have the problem below how would I write our motivation
THE PROBLEM :
Amit Dagar, who is a former employee of Pfizer Inc., received information about the Covid antiviral pill Paxlovid from his supervisor implying that the antiviral treatment the company was working on was now successful. After the exchange with his supervisor, Amit Dagar purchased short term, out-of -the-money Pfizer call options, including options that expired the following day. After purchasing those options, he provided information to his close friend Atul Bhiwapurkar and he also purchased similar call options in Pfizer.
The complaint the SEC filed against them alleges that Dagar generated approximately $214,395 in illicit trading profits, which amounted to a one-day investment return of 2,458 percent and Bhiwapurkar generated approximately $60,300 in illicit trading profits, which amounted to a one-day investment return of 791 percent.
Most people believe insider trading should be legal because it is a victimless crime. Technically nobody is being robbed of money that is in their possession nor is anyone physically harmed. Some people also believe that insider trading should be legal because it would make the markets more efficient. When insiders buy and sell stocks due to nonpublic information, investors will be able to trade based on the price movements. When an insider has information about a company that will increase or decrease the stock but is prevented from selling or buying, non-insiders will not base their trades on the unknown information, which can cause losses.
Despite some people's belief that insider trading is a victimless crime, insider trading does cause harm in more ways than one. Dagar had information that the public did not have and therefore gained a lot of money. All market participants did not have an equal opportunity to exploit the information used. Trying to beat the stock market is already hard, but when some people have an unfair advantage, it may seem impossible.
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