Is the woman guilty of insider trading

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Reference no: EM132174656

A wealthy businesswoman bought several thousand shares of a pharmaceutical company that was set to come out with a groundbreaking new cancer drug. She was a social friend of the company’s CEO. On her way to vacation in Mexico, she received information from her broker that the CEO was selling all his shares. She eventually found out that was set to reject the cancer drug. She then sold all her shares and saved her own portfolio from devastation.

1. Is the woman guilty of insider trading? Why?

2. Would you do what she did or just wait around to lose all your money?

3. Should the CEO get to sell his shares?

Reference no: EM132174656

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