During a session with her doctor, Billy Mooney, Maggie Mason mentioned in confid

Question

During a session with her doctor, Billy Mooney, Maggie Mason mentioned in confidence the imminent merger of Walgreens with Rite-Aid. Mason's ex-husband, Gus Mason, was on the board of directors at Walgreens. Mooney communicated the information to a securities broker, Olive Green, who immediately made trades in Walgreen’s securities for her own account and for her customers' accounts.

Did Mooney, Maggie Mason, Gus Mason, or Olive Green engage in illegal insider trading? Explain the potential culpability of each party. Include possible civil or criminal penalties for each party.

Was the conduct of the parties ethical?

Explanation / Answer

Yes ,they were involved in the insider trading. Maggie Mason was real culprit in this specific case as she passed the information which was a potential market for the organisation. She is going to be charged for passing the critical information of an organisation by the securities and exchange Commission under the exchange act of 1934. Security act , would be charged on Gus Mason which would result in leaking information along with Maggie Mason .
All the people involved in insider trading and would be prosecuted according to the charges set up by the above mentioned laws.
Definitely, this conduct was not ethical as they were involved in clicking machine formation of a company which is not taken by any means. This type of approach should always be avoided as leaking information and doing fraudulent transactions inside an organisation is an unethical practice which should not be processed by any means.

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