ipl-logo

Should Pete Rose Benefit From Betting On The Success Of A Team He Managed?

743 Words3 Pages

INSIDER TRADING According to US Securities and Exchange Commission (SEC, 2013), illegal insider trading occurs when one buys and sells securities while breaching the fiduciary duty or relationship of trust and confidence. However, insider trading may be legal when corporate insiders buy and sell stocks in their companies without possession of material and nonpublic information. 1. What limits should there be on insider trading? The limit on insider trading can be approached from both ends. The legal insider traders should be limited in their actions. This is because the insider trades can predict anticipated future returns and even earnings (Tang, 2017). This has negative effects on the investors. The employees of a company will always …show more content…

2. In the USA, Pete Rose was a popular baseball player, and then manager, who was punished for betting on his own team to win. a) Should Pete Rose be allowed to profit from betting on the success of a team he managed? No. Pete Rose should not be allowed to benefit from betting on the team he managed. This is because he has material information that the public does not have. For instance, he understood the limitations and strengths of the team. He could also, as a professional coach, analyses the performance of the competitor team/s. b) Should Pete Rose be punished more harshly if he profited from betting on the failure of a team he managed? No. Pete Rose should not be punished more harshly for benefitting from the betting. He should just be punished within an acceptable range. The reason for the punishment is that he is an insider trader who has material information that is not disclosed to the public. He may have known the weaknesses of the team he managed. Other people did not understand them because they are not technically savvy in this …show more content…

In the Enron case, several managers sold all their Enron stock about an hour before it became public knowledge that the company was not worth as much as everyone thought. Should a manager be punished for acting prudently based on knowledge they have discovered honestly only because the general public does not have that knowledge? The managers should be punished for illegal insider trading. The selling of the Enron stock is illegal because the managers had substantive information about the poor performance of the company. This material information was not in the public domain and other stakeholders were not aware of it. In the end, those who bought the stocks at higher prices would lose on them. The investors were not protected by the managers who served their selfish interests. 4. Should managers be required to disclose private information they have that might influence the investment decisions of the public? Also, address the question of timing about the dissemination of information: is it enough to share information on a public website or should a formal press conference be

Show More
Related
688 Words | 3 Pages

Insider trading can be legal or illegal. In Martha Stewart’s case it was illegal. When many people hear the term “insider trading” it would be look at as a crime. Insider training is the trading of a public company stock or other securities by individuals with access to nonpublic, or insider information about the company. On December 27, 2001 highly publicized Martha Stewart sold all of her shares in the biotech company ImClone.

Read More
348 Words | 2 Pages

Martha Stewart was hold under suspicion for insider trading however she was never charged for illegal inside trading. Although, the government tried to make case. She was hold under suspicion because she had sold her stock shares ImClone due to her broker’s advisement Peter Bacanovic allegedly. Martha accused on eight different counts conspiracy, obstruction of justice, and making false statements. The question is whether Martha Stewart really break the law?

Read More
574 Words | 3 Pages

The issue with Pete Rose not betting on his team warrants a lesser offense than cheating. If Pete Rose can be barred then all those who used steroids can also be banned. Lastly, I would impose a monetary fine on the owner of the team or owners for failing to adhere to the new MLB ethics Policy. Too many times players would be suspended with little or no adverse recourse for the organization.

Read More
797 Words | 4 Pages

The player does not depend on luck. The issue becomes a non-insider trading not punishable according to Internet Gambling Enforcement Act of 2006. The 1993 Act of Security Exchange American laws was not violated (Spapens, Alan, & Cyrille, 184). While it was morally upright for the two companies, DraftKings and FanDuel to permanently ban their employees from participating in any fantasy sport, the decision had far-reaching effects to the employees’ affairs.

Read More
938 Words | 4 Pages

It also includes works by those who come up with reasons why an athlete is in the right and should be spared of most punishment. One example is “Pete Rose and Baseball’s Rule 21” by Jeffrey Standen. In it, Standen argues that legendary baseball player Pete Rose should be inducted into the Baseball Hall of Fame despite the fact that he bet on games as the Cincinnati Reds’ manager. He claimed that “the deal Pete Rose made with Major League Baseball can be plausibly analogized to the so-called plea bargain that is the routine disposition of cases in the American criminal justice system,” (95) and comes to the conclusion that “Major League Baseball has not lived up to its end of the bargain” (96). By comparing the scandal to a plea bargain, Standen places Rose’s illegal actions into a new context where he knew he was wrong and just wanted a less severe punishment because of his admitted guilt.

Read More
1030 Words | 5 Pages

After reading the case of Andrei Postrado, I felt that Andrei breached his commitment of trust and confidence to KPMG by tipping his Father as well as by obtaining undisclosed confidential information. Moreover, there is also a conflict of interest, where for Andrei familial relationship is above than his commitment to KPMG. Additionally, Andrei has cheated where he got an unfair advantage of information that he was not supposed to use it for his own monetary gain. Cheating is unethical and specially for insider trading it should be considered illegal. The insider traders exploit the information they obtained to either reap monetary gain or to avoid heavy losses from unfavorable information

Read More
1670 Words | 7 Pages

Multiple sports scandals have transpired due to wagers placed on sporting events. The Black Sox Scandal of 1919 is one of the most memorable and notorious gambling scandals in American history. After eight members of the Chicago White Sox agreed to throw multiple games in exchange of a large sum of money, the Cincinnati Reds took the World Series over the White Sox. Joseph Sullivan, a gambler, met with White Sox first baseman, C. Arnold Gandil and developed a plan to gather more team members and raise funds to throw the World Series. Due to their participation in throwing the game, the eight players involved in the scandal were banned from major league baseball.

Read More
706 Words | 3 Pages

However, the greatest influence would be on those with strong values against gambling or those most unfamiliar with the career of Pete Rose. Major League Baseball was very reluctant to comment on McCarver’s comments (Flint, 2013). The article on McCarver and Pete Rose is very similar to the way that Costas described Bud Selig, the Major League Baseball Commissioner, and his reaction and comments when asked about Bonds and the use of performance enhancing drugs (Costas, 2013). The facts from these statements from well known sportscasters lead to the fact that the fan may not get the full story or opinions of those who may be directly involved with the leadership of the sport. However, with that in mind it does display that those same fans have full access to the opinions of the sportscaster.

Read More
1834 Words | 8 Pages

In the comparison of several common financial crimes, insider trading is one of prominent kind. But with the slip of time, the insider trading is also constantly changing forms of crime. This plan just based on a fact which is ASIC chairman Greg Medcraft wants tougher penalties for white collar criminals. This fact is a typical fact is applied to the Corporations Law. During this task, I will look this fact

Read More
881 Words | 4 Pages

Related to this is the Dodd-Frank Act, this is a program to protect whistleblowers “and prohibits retaliation by employers against individuals who provide the Commission with information about potential securities violations.” This is a very important addition, because it gives real motivation for people to come forward in order to save their own necks and allows people to do so without fear or retaliation. In addition to influencing whistleblower programs, and tips, Madoff’s scandal also influenced the way that companies are

Read More
1319 Words | 6 Pages

His background suggests that he exists in the Wall Street environment. This environment is widely believed to be corrupted. Hence, not unreasonable to suggest that insider trading is, if not common, but at least recurring practice

Read More
668 Words | 3 Pages

If a student (the most popular player on his team) is desperate enough to sell unauthorized merchandise, then there should be a considerate that athletes do need more than a payment of their college and athlete

Read More
1787 Words | 8 Pages

Introduction: Insider trading is when someone with privileged information about the internal, non-public information and materials about a public company trades in the stocks or securities of the company. This can be legal if the trade is reported to the regulatory body, Securities and Exchange Commission, SEC, but if not reported, it is illegal and can lead to prosecution and consequences as the trade can affect other investors (Rathburn, 2023). What limits should there be on insider trading? It's important to note that insider trading regulations vary across different jurisdictions.

Read More
1487 Words | 6 Pages

New York alone made over $5.4 billion from gambling such as the lotto, horse racing and online fantasy sports.(Blain) I think that all sport betting should be legal not only will New York make more profit it has no distinctive

Read More
554 Words | 3 Pages

Following my first reason that it could force the players and coaches to play differently, there have already been cases where coaches and players have changed their playing style for money. Some players have been accused of losing a game on purpose for money, and some coaches have been accused of losing a game, and also targeting other teams’ players, for money and bonuses. Although most players and coaches wouldn’t lose a game on purpose for money, hopefully, there could be additional stress on the player or coach if they know there is high stakes on the game they are playing in. As if professional athletes and coaches don’t have enough stress, any additional stress could make them perform or think differently.

Read More

More about Should Pete Rose Benefit From Betting On The Success Of A Team He Managed?

Open Document