please give the answer of it

Application Case The Insider Over lunch at Bouley restaurant in Manhattan's TriBeCa area, the A federal jury convicted a stock trader who worked for a well-known heads of several investment firms were discussing the conviction, and investment firm, along with two alleged accomplices, of insider trad- what they could do to make sure something like that didn't occur in ing. According to the indictment, the trader got inside information their firms. "It's not just compliance, " said one. "We've got to keep out about pending mergers from lawyers. The lawyers allegedly browsed the bad apples. " They ask you for your advice. around their law firm picking up information about corporate deals others in the firm were working on. The lawyers would then allegedly Questions pass their information on to a friend, who in turn passed it on to the 6-10. We want you to design an employee selection program for hir- trader. Such "inside" information reportedly helped the trader (and his ing stock traders. We already know what to look for as far as investment firm) earn millions of dollars. The trader would then alleg- technical skills are concerned-accounting courses, economics, edly thank the lawyers, for instance, with envelopes filled with cash. and so on. What we want is a program for screening out po- Things like that are not supposed to happen. Federal and state tential bad apples. To that end, please let us know the follow- laws prohibit them. And investment firms have their own compliance ing: What screening test(s) would you suggest, and why? What procedures to identify and head off shady trades. The problem is that questions should we add to our application form? Specifically controlling such behavior once the firm has someone working for it how should we check candidates' backgrounds, and what who may be prone to engage in inside trading isn't easy. "Better to questions should we ask previous employers and references? avoid hiring such people in the first place, " said one pundit. 6-11. What else (if anything) would you suggest