Abstract
The paper begins with a brief definition of insider trading and then goes on to explore the meaning of this practice in more detail. It uses examples of insider trading that have become media events, to create a clear picture of the practice. The paper looks at the 1980's explosion of insider trading and at the development of legislation against insider trading. The case of Vincent Chiarella is examined as one of the first public cases of insider trading. The recent case of Martha Stewart and the Imclone company is discussed to illustrate the concept of insider trading. The re-evaluation of the rules of the SEC (Securities and Exchange Commission) is explored and the changes in it's make-up are mentioned. The paper concludes by studying the damaging effects of insider trading.

From the Paper
"She has spent years telling America how to throw the best holiday parties and how to cook meals that even the pickiest of eaters will love. Her books, tips and advice are world-renowned when it comes to homemaking. Her name, Martha Stewart has become synonymous with elegance. In more recent months her name has also become partners with the term "insider trading". Martha Stewart is the latest celebrity or well known figure to move to the forefront of publicity regarding insider trading. Because she is one who is usually regarded as the housewife's mentor the accusations that surround her have shocked the nation."

Tags:definition, example, case-study, media, legislation, Chiarella, Stewart, Imclone, rules, SEC, effects