Originally,courts did not consider insider trading as harmful to the corporation and so it did not consider it a breach of the fiduciary duty owed to the corporation.

Question

Quizplus · Accepted Answer

Insider trading was not considered harmful to the corporation and thus not a breach of fiduciary duty in the early days of the stock market. It was only later that courts began to recognize the harm caused to other investors and the integrity of the market.

Originally,courts Did Not Consider Insider Trading as Harmful to the Corporation