ETHC 3P82 Lecture Notes - Fiduciary, Livent, Murder Of Jennifer Moore
12 Mar 2013
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Document Summary
Wednesday, march 10 - financial information, insider trading, and. Truth: correspondency (of a belief, statement, etc. ) to reality; conformity to an actual fact; affects the field of accountancy. Mned lies, and managed earnings by carol j. loomis (p. 154) Almost a position paper: has no fully articulated thesis. Why: to attract investors, to protect stock price, to protect executive bonuses (often tied to consistent performance: 156: stock price should be consistent over time; ceo is strongly concerned with it as his compensation depends on it. Example: canadian livent case: 156: livent corp produced theatrical performances and shows (phantom ofthe. Partial solution (is a journalistic paper): respect for honest accounting practices and regulations. Why: because investors (and other stakeholders) should know the whole truth. Trading should be happening on a level playing field; insider trading, however, involves a disparity of information between the parties. 2 versions: equal information and equal access to information.
