ethical/insider trading issue maybe?
Lets pretend i knew about a situation where an executive at my firm purchased common shares in a personal acct in another financial company that ran into rapid trouble and imminent bankruptcy unless a bailout package was arranged. Further, suppose the investment in common shares took place on a friday and then the troubled financial company announces a consortium of bailout partners over the weekend,one of the constituents of which is the firm to which my executive belongs. Any thoughts on whether or not there are ethical or even legal issues here? Seems strange that the executive would be able to make an investment in the ccmmon stock with the knowledge of a soon to be announced bailout when the rest of market participants werent privy to that knowledge…. |