Saul is a manager at Holden Apparels Inc.and is friends with the company's CEO.This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival.Saul buys stocks of Holden with the expectation that its stocks will appreciate.But the deal falls through and the stocks of Holden depreciate in the following months.Are Saul's actions unethical? Why?
A) Yes, because it is unethical to trade stocks based on insider information irrespective of the final outcome.
B) Yes, because it is illegal and unethical for Saul to possess any kind of insider information.
C) No, because Saul did not ask the CEO to disclose such information to him.
D) No, because Saul did not make any profits from trading stocks using this information.
Correct Answer:
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