Corporate Crime and Insider Trading

    The corporate crime involves the crimes that are committed by the entire company. This type of crime benefits the investors or the people who are in the high ranks, for instance, those in the management in the company. Insider trading refers to the purchasing or selling of stock by someone who has access to special knowledge while the same information is not available to the public and in this case the investors (Seitzinger 2002). They are all similar as they are all involved in crimes that are occurring in the business world. The difference between these two types of crimes is that the insider trading is one of the white collar crimes and it benefits the individual who has committed the crime while the corporate crime benefits the entire company or the organization that is more than one person. For example, Rajat Gupta who was a high-ranking executive was arrested for insider trading as he had some information that other investors did not have and thus he shared this information with a tycoon who made a treasure at the expense of other investors who had no access to this information (CBS 2011). Kozlowski however was arrested for stealing a fortune from his organization (CBS 2007). The sentences given to them were appropriate as these are crimes which cannot be ignored at all.  There is some legislation that has been put in place so as to ensure that these crimes do not occur in the future, for instance, one of the policy is the imposition of up to threefold damages upon any offender who engages in these crimes.

 

 

 

 

References

            CBS. (2007). Eye To Eye: Dennis Kozlowski http://www.youtube.com/watch?v=mSmX4nz5ugM

            CBS. (2011). make biggest insider trading bust ever http://www.youtube.com/watch?v=ZgKE0NVVSc0

            Seitzinger, M. V. (2002). Federal Securities Law: Insider Trading.