Explain what the flowing statement by handel (1982, p. 36) means and provide an argument to either support or oppose the contention. Things may exist independently of our accounts, but they have no human existence until they become accountable. Things may not exist, but they may take on human significance by becoming accountable. Accounts define reality and at the same time they are that reality. The processes by which accounts are offered and accepted are the fundamental social process. 3.18). A newspaper article entitled ‘Hannes "knew of TNT valuation" (Australian, 18 June 1999, p. 24) reported a case involving a person who was before courts on a charge of insider trading. In part, the article stated? Macquarie bank executive director Simon Hannes learnt to the value the bank had placed on TNT shares three months before the transport glant was subject to a takeover bid by Dutch company KPN, a jury heard yesterday. The crown has alleged that Mr Hannes, using alias mark booth, used that confidential information to make a $2 million profit trading in TNT options at the time of October 1996 takeover offer. Macquarie was advising TNT on the bid and the downing centre district court jury has previously heard Mr. Hannes claimed to have had only a general knowledge of a possible transaction involving TNT. Mr hannes 39, has pleased not guilty to one charge of insider trading and two of structuring bank withdrawals to avoid reporting requirements.

(A) Which of the theoretical perspectives of regulation reviewed in this chapter might best explain the existence of laws that prohibit insider trading?

(B) How would advocates of a ‘free market' approach justify the removal of legislation pertaining to insider trading?

Required: Critically analyse and evaluate the arguments for, and against, for each of the case studies. Which arguments do you consider to be more compelling? (In other words, what is your opinion?)