Law, Privacy And Digital Data
For apps to be featured on the iPhone, developers must build it with Apple's software development kit and then apply for approval. Apple rejected the Google Voice iPhone App, and further stated that it would not accept any applications that incorporated Google Voice functionality. Apple reasoned that this app duplicates the phone's core features. It also rejected Google's location-based app Google Latitude. If you were developing a collaborative platform, do you think the best model is this collaborative model, or is the open innovation model better – if your main goal is to maximize innovation? What if your main goal is to make money?
Plaintiffs filed a class action lawsuit against investment banks alleging that they inflated prices on more than 300 IPOs, causing IPO investors to overpay for stock, and unlawfully benefited these banks through overcompensation of banking commissions and profits made through quick sales of this stock in their own accounts before prices settled into a more realistic valuation. How would you combat such abuses going forward?
Sample Solution
Going forward, it is important to take steps to prevent the abuses that occurred in the case of inflated IPO prices. One way to do this is through increased regulation and oversight from regulatory bodies such as the Securities and Exchange Commission (SEC). The SEC should require greater transparency in terms of pricing for IPOs as well as other investment products, so that investors are better informed about possible risks associated with their investments. Furthermore,
stricter regulations regarding insider trading should be implemented in order to protect investors who may otherwise be at a disadvantage due to corporate insiders having access to more information than they do. Additionally, financial institutions and other parties involved in investing activities should be required to disclose conflicts of interest or potential benefits they may receive from participating in certain deals.
In addition to increased regulation and oversight, technology can also be used as a tool for combatting these types of abuses going forward. For example, artificial intelligence can be leveraged in order to detect patterns that suggest suspicious behavior or fraud related activities more quickly than traditional methods. Incorporating blockchain technology into securities transactions could also help reduce fraudulent practices by providing an immutable ledger of all transactions which cannot be altered without detection or approval from multiple stakeholders.
Finally, creating incentives for whistleblowers could also encourage those who are aware of such practices occurring within their company or organization come forward without fear of reprisal or consequence. Programs like this already exist within large companies but need to become more widespread throughout the industry if they are truly going have an impact on reducing illegal activity related to IPOs and other investment opportunities.
Ultimately, by taking measures such as increased regulation and oversight, utilizing new technologies including AI and blockchain technologies, along with implementing whistleblower protection programs into industry standards will help reduce incidents similar those seen during the class action lawsuit against investment banks involving inflated IPOs prices going forward.