Insider Trading Scandals Mar the Emerging Junk Bond Market
At a glance:
- Series: Great Events from History II: Business and Commerce Series
- Categories: Economics, Crime, Law, Legal History, Courts
- Subcategories: Business, Scandals, Corruption, Fraud
- Curriculum: American History 1951-present
- Geographical Location: New York City
- Date: May 12, 1986
Article abstract: The rise of Drexel Burnham Lambert as a major trader in the new market for junk bonds provided opportunities for illegal insider trading, with which Dennis Levine was charged.
Summary of Event
In the 1980’s, the emergent market for junk bonds offered opportunities for violations of insider trading laws. Those laws had prohibited stock and bond traders from profiting from transactions about which they had privileged information. The nature of placing such issues with buyers, however, blurred the line between information that was...
[The entire page is 2954 words long]
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