Mickey speaks with Cindy Schipani, Merwin H. Waterman Collegiate Professor of Business Administration & Professor of Business Law at the University of Michigan. We talk about insider charitable giving, a “worryingly widespread” practice that is quite harmful. “Increasing civil and criminal penalties does not work as a successful deterrent if there is substantial ambiguity about what is illegal insider trading,” says Schipani. “This ambiguity allows insiders to not only trade successfully but also to fend off attempts by the U.S. Securities and Exchange Commission and the U.S. Justice Department to discipline them after the fact.” Our conversation covers the things nonprofits should be aware of when processing gifts of stocks and securities.
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