Insider trading (slide1)

Insider trading is the trading of a corporation's stock or other securities (sound: security
+ s) by individuals with potential access to non-public information about the company. In
most countries, trading by corporate insiders such as officers, key employees, directors,
and large shareholders may be legal, as long as this trading is done in a way that doesn’t
take advantage of non-public information.

There is a case about insider trading occurred a few weeks ago.

(Slide 2)

Raj Rajaratnam, a partner in Galleon Management and a portfolio manager for Galleon
Group, and a hedge fund with up to $7 billion in assets under management, was accused
of conspiring with others to trade based on insider information about several well-known
publicly traded companies, including Google, Clearwire and others.

U.S. Attorney Preet Bharara said that this was the largest hedge fund case ever
prosecuted and marked the first use of court authorized wiretaps to capture conversations
by suspects in an insider trading case.

(Slide 3) Who is Raj Rajaratnam?

Raj Rajaratnam is 52, married and has 3 kids. He was born in Sri Lanka and graduated
from the University of Pennsylvania (sound: pencil-vang-nia)’s Wharton School of
Business. He was a well-known manager of billions of dollars in technology and health-
care hedge (sound: head-ch) funds at Galleon since 1996. He is a one of America’s
richest man and was ranked no.559 by Forbes magazine 2009 among the world’s
wealthiest billionaires, with a $1.3 billion net worth, as its shown as the ranking on this
slide (4).
Significance (slide 5)

Bharara said that this case should be a wake-up call for Wall Street. It is very important
because it reminds people, especially financial professionals that insider trading is illegal,
and you will always get caught easily if you are doing it.

(Slide 6) Christian Business Ethics

Earning Profit: the ability to earn a profit is the ability to multiply our resources while
helping others. God gave us this ability and it is not evil or morally neutral but good.
Through this ability we can show God’s love to others.

We could use our resource to advance our own pride, or we could become greedy,
just like what Raj Rajaratnam did, or we could take wrongful security in rich men.
The bible says that we can’t bring the treasures we earned in this world to heaven,
and that means those we are having now is not eternal. In Matt. 6:19: “Do not
store up for yourselves treasures on earth, where moth and rust destroy, and where
thieves break in and steal.”

In James 5:3: “You have lived on earth in luxury and self-indulgence. You have fattened
yourselves in the day of slaughter.(sound: s-law-ther)” We could waste our
possessions abounding in luxury and without self-control, and we would overlook
the needs of others, and those are called ‘materialism,’ and they are wrong.