Gianna Tuck is an accountant for Post Pharmaceuticals. Her duties include tracki

Question

Gianna Tuck is an accountant for Post Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Gianna notices that a great deal of funds have been spent on a particular project for a new drug. She hears "through the grapevine" that the company is about to patent the drug and expects it to be a major advance in antibiotics.

Gianna believes that this new drug will greatly improve company performance and will cause the company's stock to increase in value. Gianna decides to purchase shares of Post in order to benefit from this expected increase.

Required:

Who are the stakeholders in this situation?

What are the ethical considerations?

Are Gianna's actions ethical?

Explanation / Answer

She needs to make sure to follow certain guidelines or she could be
commiting Illegal Insider Trading...

"Insider trading" is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders

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