Insider Information and Ethical Decision-Making

Maria is a portfolio manager at a large investment firm. She is currently managing a fund that has a significant investment in a publicly traded company, ABC Corp. Recently, Maria attended a conference where she met with a senior executive from ABC Corp., who hinted at a potential merger that could significantly increase the share price. After the conference, Maria's colleague suggested that Maria might consider buying more shares of ABC Corp. for the fund before the information becomes public.

As she contemplates this suggestion, Maria reflects on her obligations as a fiduciary. She knows that acting on insider information is prohibited by law and could lead to severe penalties, but she is unsure of how to best proceed while still fulfilling her duties to her clients.