Financial Misconduct

Means Fraud, Gross Negligence or Intentional or Willful

Misconduct that contributes, directly or indirectly, to the
company’s financial or operational results.

https://www.lawinsider.com
EXAMPLES

Misstatements and other irregularities in company records, including the

intentional misstatement of the results of operations or financial
wrongdoings.

Forgery or other alteration of company documents.

Fraud and other unlawful acts.

 Insider Trading
- An insider is any officer, director, or owner of 10 percent or more of a class of a
company’s securities.

Illegal insider trading is

the buying or selling of stocks
Two types of insider by insiders who possess
information that is not yet
trading public.

Illegal insider trading

Legal insider trading Legal insider trading involves

legally buying and selling stock
in an insider’s own company, but
not all the time.
LEGAL INSIDER TRADING ILLEGAL INSIDER TRADING

A lawyer representing the CEO of a company learns in

a confidential meeting that the CEO is going to be
indicted for accounting fraud the next day. The lawyer
A CEO of a A board member shorts 1,000 shares of the company because he knows
corporation buys of a corporation that the stock price is going to go way down on news
1,000 shares of buys 5,000 shares of the indictment.
stock in the of stock in the
corporation. The corporation. The
trade is reported An employee of a trade is reported
to the Securities corporation to the Securities A corporate officer learns of a confidential merger
and Exchange exercises his and Exchange between his company and another lucrative business.
Commission. stock options and Commission. Knowing that the merger will require the purchase of
buys 500 shares shares at a high price, the corporate officer buys the
of stock in the stock the day before the merger is going to go through.
company that he
works for.

A CEO of a corporation buys 1,000 shares of stock

in the corporation. The trade is reported to the
Securities and Exchange Commission.
 Some notorious cases involving illegal insider trading

a. Jeffrey Skilling/ Enron Corporation

b. R. Foster Winans/The Wall Street
Journal
c. Albert H. Wiggin/Chase National
Bank
d. Stewart/ImClone Systems
 Types of Intellectual Property Rights in the Philippines

Copyright is the legal Among the literary and artistic works

protection extended enumerated in the IP Code are Books
to the owner of the and Other Writings, Musical Works,
Copyright and Related
rights in an original Films and Photographic Works,
Rights
work. “Original work” Ornamental Designs or Models of
refers to intellectual Manufacture, Paintings, Sculptures,
creation in the literary, and Other works of Arts, as well
scientific and artistic Computer Programs and Mobile
domain. Apps, etc

Any visible sign capable

Trademark and Service
of distinguishing the
Marks goods (trademark) or
services (service mark) of
an enterprise.