Foundations of Business Research Paper Example | Topics and Well Written Essays - 1000 words - 1

Foundations of Business - Research Paper Example Violation of insider trading also comprise of ‘tipping’ such information and misappropriation of information. There are various cases of insider trading. The employees, officers and directors of corporate traded the securities of company after learning the confidential report of the company. Friends, family members and business associates of the corporate officials may trade the securities after receiving hidden information. The securities can also be traded by employee of banking, law and brokerage who are provided such information. The government employee can trade the securities by learning such information from their employment (U.S. Securities and Exchange Commission, 2001). 2.0 Types of Transactions Considered Insider Trading Regardless of Their Legality The information of the company is not disclosed to the public until the appropriate time. If the employees or officers in the company disclosed the material to the public before company does, then it will affect th e stock price of the company. The material may be positive or negative but is illegal to disclose to the public and it may result to the violation of the policy of company. The transaction must not take place until the next business day after the exposure of material information. The transactions which are prohibited in the company are transaction in company securities and transaction in the securities of other companies. In company securities transaction, an employee is aware of the materials and non-public information about the company. He is required not to be part of certain activities of the company. Company securities’ trading must not be done, i.e. purchasing or selling company securities. He must not advise the public to buy, hold or sell the securities of the company. The employee should not disclose the information of the company and must not guide or help anyone in any of these activities. Transaction is valid in case of emergency for raising money which is not an exemption to the prohibition made on insider trading. In other companies’ transaction in securities, an employee is aware of the non public information of other companies because of their jobs. He is not supposed to trade securities of other companies, which is the violation of other companies’ policies (Heckmann Corporation, n.d.). 3.0 Specific Conditions under Which Insider Trading Is Considered Illegal under United States’ Federal Securities Laws The laws of Federal securities prohibit insiders from benefiting from the information which have not been provided to the public. The laws do not provide permission that the member in public market should have equal information; rather it focuses upon the fact that certain persons might use their position to attain undue informational advantage over others. Under US Federal securities laws, it is unlawful for every person whether ‘directly or indirectly’, by using any methods or ‘instrumentality of interstate commerce’, by means of mails or any facilities of national securities exchange in order to perform various activities. A person should not employ any scheme, mechanism or artifice to defraud. He should not make any false statement of a

Read the requirment carefully and finish on time Essay

Read the requirment carefully and finish on time - Essay Example 59). According to the company’s handbook (1935, p 10), the company began its business by erecting numerous roadside dangers and other warning signs. The company was in charge of road signs until early 1930s when the local authorities took control of the signs. The achievements gained by the company were destroyed when most of their road signs were destroyed during the Second World War. By then, the company had erected approximately 6,500 direction signs and 15,000 village signs (The Automobile Association Handbook). The company published an AA Member’s Special Handbook in 1908. By using the handbook, the company’s clients could find the location of AA agents across the country and mechanics. The clients also received free legal services for one year (Passmore 2003, p. 62). The company has grown from a small company to become on the leading companies in the world. The motor insurance service has grown to become one of the largest in London and the United Kingdom a t large. The insurance industry is experiencing growth that is generated by new entrants with new products and way of doing things. It is due to these factors that the company needs to explore means of ensuring that it remains among the best service providers in this industry. SWOT Analysis Strengths The Automobile Association has various strengths that it can exploit to gain a competitive edge in the market. The first strength the company has built over the years is its reputation of being reliable in providing services. The company’s clients need not worry when they are in some form of discomfort since they trust in the company to deliver. The company is also renowned for having qualified and competent staff. This includes qualified mechanics for the garage sections and the staff in other areas. Weaknesses Despite having the above notable strengths, the company also has some weaknesses that can be exploited by the competitors. The competitors in the British market arise fro m firms such as RAC and Green Flag and Direct Line and a host of many other small players (Harison & John, 2008). The second placed RAC is becoming a serious threat to the existence of the company. The company offers all the services that the Automobile Association offers in addition to security services. This therefore means that the company has a more complete package than the Automobile Association even though they are still young in client size. The second weakness of the company is the high employee turnover. On one hand, the rivals lure some of the employees away from the company with huge salaries. Since the Automobile Association is renowned for having top class employees, the competitors target these employees instead of struggling to breed their own. On the other hand, some of the employees such as mechanics use the money from their savings to open their own businesses using the reputation of having worked for the Automobile Association. Opportunities The current economic condition is tough on some people. This people however require motor insurance and other related services. These types of people will therefore look for cheaper options that also provide quality and reliable services. The company can gain from such people by introducing products for all classes of people. The other option that could be more profitable is for the company to merge with one of the competitors such as RAC. This would