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Insider Trade Sources Rhetorical Analysis

Reagan L. Kinney

ENC 2135- 0194: Research, Genre, and Context

Andrew Zolot

March 24, 2023

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Economists and non-economists alike fixate on trading amongst companies both

externally and internally. This is because success in trading equates to success in finances. To get

ahead, some people partake in legal insider trading, which many economic non-experts need to

discuss and understand. Through different mediums, experts in the financial field attempt to

evaluate the connection between legal insider trade and how society reacts to it, both socially and

economically.

         The Southbank Investment Research Group works with experts in the financial field to

educate their audience on different aspects of finances; in the specific video “The Shocking

Truth About Insider Trading: It’s More Legal Than You Think,” Dan Taylor, an accredited

professor of accounting at the University of Pennsylvania answers questions related to the

restrictions connected to insider trade. The University of Pennsylvania flag appears behind him

in the interview. He is giving readers their first sense of visual ethos in the piece. It conveys to

the audience his education level as an Ivey League Professor. The design of this piece is a virtual

interview, which allows producers to highlight what is being spoken by changing who appears

on the screen.

Both participants are on the screen throughout the introduction and the question-asking

process. Once Taylor begins answering questions, the interviewer is removed from the screen. 

Signifying to the audience that what is being said directly answers the question and heavier

attention should be paid to these points. Although this piece was done in a video format, it is like

that of a scholarly-based article. Dan Taylor is an expert in the field, and he conveys that by

answering the questions asked by the interviewer, James Early. The material described in this

piece is done thoughtfully and formally. Taylor expresses his knowledge through the jargon and

his diction; he educates viewers on the legalities of insider trade. His phrasing matches the tone
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of the interview, serious. Taylor expresses his knowledge and lacks an explanation for those less

educated in insider trade. It shows that Taylor’s target audience is his peers, whereas the

interviewer’s target audience is those less informed. The interviewer attempts to explain further

what is being discussed to those with lesser knowledge; however, it is apparent that the

expectation of the audience members is an understanding of the economy and trade. The video

enables readers to learn more about trade and insider trade, increasing viewers' education.

         This piece answers numerous questions, specifically, those affiliated with insider trade

amongst those in the business or related fields. The purpose of this piece is just that, to educate

about a topic with many assumptions affiliated with and minimal published clear information.

The exigence of this rhetorical situation is the Southbank Investment Research Company’s effort

to inform audience members of different aspects of both economic trade and the financial world.

It aims to educate as Taylor acknowledges that Insider Trade is challenging to understand,

primarily when articles are published within the field. The investigation of insider trade laws

usually leads to information published by the Securities and Exchange Information, sometimes

leading to additional confusion. This can be attributed to the fact that the only rules present are

cases published regarding previous insider trade debates. This means there are no established

laws; everything is dictated by court decisions and then used as precedents for future incidents.

As an audience member, it would be difficult to follow along with what Taylor states without

background knowledge of the trade, both insider and publicly. This, in addition to the length of

the video, is an example of constraints in this type of medium. Without both the time and basic

knowledge, one would struggle to comprehend and attempt to learn about the leniency present in

legal insider trade.

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         The interview’s primary purpose is to educate, which explains why ethos is the most

prominent feature of the rhetorical triangle. The interviewee, Dan Taylor, is a professor at the

University of Pennsylvania in the Wharton School of Business. This is a highly accredited

University, and with his knowledge and acknowledgment of expertise, viewers are likelier to

listen to this information because of the accredited source. Additionally, logos are present in the

interview as Taylor references case laws that explain insider trade and how it is persecuted in a

court case. This shows field statistics and how cases are decided once the precedent is set. Pathos

is less present in this interview but still somewhat apparent. An example of pathos in this piece is

Taylor’s reference to his political views. Others with similar views listen to his statement

because they are more likely to agree. This goes both ways; however, too strong of political

views could result in differing opinions and the unwillingness to listen to Taylor’s statements.

This piece is done professionally, like that of a scholarly article, emphasizing the importance of

ethos and logos in spreading insider trade and economic information.

  “Legal Insider Trading and Market Efficiency” is a scholarly article, and as such, it is

used to educate those looking to further their education in specific fields. Experts write it for

those with background education on the topic. Because these articles are written and reviewed by

experts, there is a significant presence of logos in them, and this piece does not differ. It is a

written investigation of the impact of insider trade on market efficiency. Bodt studies the effects

of the restriction levels of insider trade and the speed of response on the market. This piece in the

Florida State University Library tools is formatted as an experiment with a defined introduction,

hypothesis, statistics, and conclusion. This is done formally to coincide with the professionals

writing the piece. The investigation of the reaction pace from the level of insider trade

regulations to the market was done in a matter that references scholarly sources, introducing the
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use of ethos to the readers. The reference to other articles insinuates that further research had

been conducted and checked by other experts in the field. All discovered information coincides

with what has been established in the field. In addition to the articles referenced in the piece,

there are additional resources cited in the Works Cited, furthering the use of ethos, signifying

how well-researched the work is in establishing a conclusion based not only on the experimental

results but also those of other sources.

This piece is an investigative piece. Throughout the work, the author refers to the

correlation between restrictions on insider trade and market efficiency. The author looks to

understand whether lesser restrictions on insider trade would enable quicker economic growth in

the market. The exigence in this article is the research question, “Does legal insider trading

contributes to market efficiency?” (Aktas). The author attempts to discover the connection, and

this article explains the said experiment.

The audience is like the interview audience as it is for people actively looking to expand

their understanding of economics. It is for parties attempting to inform and sway the opinions of

possible lawmakers who can amend the regulations connected to insider trade. Those looking to

gain wealth may look at this and use it to influence politicians and, consequently, help

themselves and the politician's well-being. This varies from the interview as the primary intent is

to inform those with a basic knowledge of economics. In contrast, more than a basic

understanding is needed to comprehend this piece. It is written for scholars, by scholars that

leave the audience limited. The interview was explained more for those who needed clarification.

Like the interview, the constraint is the knowledge of insider trade. However, the degree varies.

Many of the terms used in the article need explanation, and researching them leads to more

economic terms. Unlike the interview, immediate resources for further study are listed at the
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bottom of the page. Although difficult to understand the immediate piece, there are other pieces

listed that may aid in the increase of economic knowledge.

The article, in contrast to the interview, appears to be unbiased. This continues to

establish ethos in the piece and signifies it as the most important rhetorical device used

throughout the article and the interview. The piece's conclusion explains the results as

inconclusive due to the limited time frame, establishing the author's credibility to maintain the

outcome in favor of his hypothesis. Like other scholarly articles, this piece has a significant

presence of logos. Not only does this article include logos, but it also presents where it is found.

Atkas explains that “we use the Securities and Exchange Commission (SEC) Ownership

Reporting System data files to extract corporate insider purchases and sales” (Aktas). It shows

the readers that although the results were inconclusive, it was well researched and thought-out,

with the ability of replication to lead to a conclusion ultimately.

The main takeaway from different mediums used to explain the same topics is that

audiences differ dependent on who is constructing the piece. The different pieces demonstrate

the different audiences. Interviewers tend to be conducted in favor of the common person with

minimal background information. Scholarly articles are created for those with much background

information as they do not stop to explain what is stated. These pieces are alike in the fact that

they both had a presence of well-educated people talking about insider trade, however, the

interview made it apparent that what was said by the professional was to be dissected for the

common folk.

With all scholarly topics, many different types of resources are available to learn more

about the topic. These resources vary in degree of research and need help understanding. The

interview itself was an adequate resource for those with a basic knowledge of insider trade, as
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the answers by the professor were explained further. In contrast, the scholarly article is meant for

experts in the field. Although different, both sources effectively utilize ethos and logos to explain

how insider trade plays a role in the economy.

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Works Cited

Aktas, de Bodt, E., & Van Oppens, H. (2008). Legal insider trading and market efficiency.

Journal of Banking & Finance, 32(7), 1379–1392. https://doi.org/10.1016/j.jbankfin.2007.11.003

https://youtu.be/AIPqCe7q6wk

“The Shocking Truth About Insider Trading: It’s More Legal Than You Think”