This essay provides a comprehensive analysis of insider trading, exploring its ethical and social responsibility implications. It examines various strategies that executives, regulators, and investors can employ to prevent insider trading, including the establishment of robust compliance measures, strict regulatory oversight, and thorough scrutiny of employees. The essay also delves into the implications of sharing confidential material information, such as the potential for legal consequences, financial losses, and damage to market integrity. Furthermore, it assesses the effectiveness of the secret investigation and conviction of Rajaratnam and his colleagues in deterring future instances of insider trading. The essay concludes with a synthesis of the findings, emphasizing the importance of ethical conduct and proactive measures to safeguard against financial fraud within the business environment.