27. Which of the following best describes why insider trading is said to be unethical?a. The theft of information gives the insider an unfair advantage in the organization and the markets.b. The theft of information can change the value of the stock so that it reflects the true value of the organization.c. Insider trading harms relationships between the organization and its customers.d. Insider trading increases society’s overall utility by increasing the size of the market.
27. Which of the following best describes why insider trading is said to be unethical?a. The theft of information gives the insider an unfair advantage in the organization and the markets.b. The theft of information can change the value of the stock so that it reflects the true value of the organization.c. Insider trading harms relationships between the organization and its customers.d. Insider trading increases society’s overall utility by increasing the size of the market.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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27. Which of the following best describes why insider trading is said to be unethical?
a. The theft of information gives the insider an unfair advantage in the organization and the markets.
b. The theft of information can change the value of the stock so that it reflects the true value of the organization.
c. Insider trading harms relationships between the organization and its customers.
d. Insider trading increases society’s overall utility by increasing the size of the market.
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