Question

1. It has been reported that several U.S. senators sold some of their stock one week before the stock market crash as a result of the pandemic (they were briefed about the looming pandemic as part of their official duties) A. if this is proven true, and they are shown to be personally responsible, what should their punishment be? B. Why is this event so evil, potentially? 2. It has been reported that some retailers may be refusing to accept cash (currency) as payment in exchange for products and services due to the pandemic. (I am not talking about BART letting riders ride for free). A. If this is proven to be true, what may this mean for the millions of Americans who do not have the ability to pay in any other way? B. If this is ‘illegal’ or may be ‘illegal’ then what, if any, penalties should there be, in theory? Why? C. How might these penalties be enforced?

Answer 1

1.

A

It is the case of insider trading and it is a criminal offense. As per the SEC guidelines, any person found in doing insider trading, will get the criminal fine up to the level of $5000000 and or prison with maximum term up to 20 years. It is the case of insider trading, because these people as senators knew that declaration of COVID-19 as pandemic is looming larges and with its declaration, the stock market will fall. So, these people had private information, in the capacity of senators and they used it to sell their stocks.

==

B.

It is the evil event, because people who are responsible to make laws and prohibit people fro doing any wrong, are committing the same criminal offense. It is a very dangerous trend, because senators have different types of private information that affect the markets. Hence, it makes market and common investors to be vulnerable to it. It is completely unethical other than being a criminal offense.

==

Pl. repost other unanswered questions for their proper answers!