Explore BrainMass

Insider Trading

1. Sternberg argues that certain kinds of insider trading are ethical, whereas other kinds are unethical. Set forth your understanding of insider trading and whether or not you believe such trading to be ethical or unethical and why.

Solution Preview

It is my understanding that insider trading occurs when a person has knowledge of an event within a company that will impact this company financially either negatively or positively. They take this information and use it to make stock purchases or sales that are in their personal best interest. This information is not public knowledge and usually is only made known to people inside the ...

Solution Summary

The solution answers the question(s) below.