Ethical Decision on Insider Information

Medium Ethical Decision-making Integrity Of Capital Markets

Jane Smith is a portfolio manager at a reputable investment firm. She recently learned that her firm is set to release positive earnings guidance that will likely lead to a substantial rise in the stock price of one of the companies in her portfolio. Excited about the information, Jane considers buying more shares of that company's stock for her personal account before the announcement goes public. What should Jane do to uphold her integrity within the capital markets?

Jane should purchase the additional shares in her personal account since she is allowed to trade on public information.

Jane should refrain from purchasing any additional shares until after the public announcement.

Jane can buy the shares as long as she discloses her intentions to her compliance officer beforehand.

Hint

Submitted9.8K

Correct7.7K

% Correct78%