Will your colleague remember it?

Date: 2015-10-07; view: 413.

Suppose you sell the shares. Will it be insider trading?

Can you report the information without implicating Lucy?

Must you report the information to your superiors?

Did Lucy have a right to give you this information?

Has the nature of the information changed?

It's common knowledge that ‘Standard Software' is so successful mainly thanks to Mr Greenwood's talent. Under the circumstances the shares of the company are sure to go down because of his health problems.

You are aware that if you reveal the information you will most certainly get Lucy into trouble.

You decide to keep the secret because it would be an unfriendly step to set up Lucy. However, you have a problem. Practically all analysts at your bank considered ‘Standard Software' shares a “good buy”, so you invested all your savings in them. If the shares go down, you'll lose a lot.

You decide to sell the shares quickly hoping Mr Greenwood will soon recover.

You sell them, but the deal attracts attention because just a few days before you discussed the share prices with a co-worker and you both agreed that ‘Standard Software' was a good investment.

Unfortunately, Mr Greenwood dies at hospital. The shares of ‘Standard Software' go down dramatically and your bank loses a lot of money. Your co-worker suspects you knew something when you sold your shares and reports it to your superior. The latter confronts you and makes you tell him the truth.