James Should Report His Boss’ Intentions Because of Legitimacy, Welfare of the Public and Conscience.

James should report his boss’ intentions because of legitimacy, welfare of the public and conscience.

Reporting Natalia’s plan to Securities and Exchange Commission (SEC) can protect the interest of the public. James’ boss decided to use the confidential information to earn huge profit from stock market. She proposed St. Genevieve to purchase its shares back from the current shareholders at a low price before the reveal of finding a new oil reserve. Then, investors will lose the chance to earn profit from the stock market without the disclosure of information. If James tell SEC his boss’ proposal, his act will guarantee the public to have a level playing field in the stock market. For instance, SEC accused Citigroup of releasing information selectively to ensure the equity of stock market. Nevertheless, someone may argue the fairness of stock market is not influenced by insider trading. This statement is wrong because according to Market Cleanliness Statistic issued by UK Financial Services Authority, market fairness is related to how many people engage in prohibited trading behaviors like insider trading. As insider trading damages the fairness of stock market, James should report it to SEC to protect the interest of public.

Insider trading is illicit that James should report it for legitimate reason. Insider trading is unacceptable in our society that there is law to restrict it. In Untied States, SEC states that insider trading is illegal that company or individual should not carry out this activity. People engage in insider trading will be arrested by SEC and sued by it, for example, Bristol-Myers Squibb executive Robert Ramnarine was charged by SEC due to insider trading in 2012. Apart from arrestment, participating in insider trades may get in jail, for instance, a former Deloitte & Touche LLP partner was sentenced to 21 months in prison. However, someone may say that insider trading is common in our society that James should not inform the authorities. This statement is incorrect since no matter insider trading is usual or not, it is still an illegal activity. As all the above punishment indicates that insider trading is an unlawful business activity, James should report it to SEC.