Texas Gulf Sulphur: The Timmins Ontario Mine

Texas Gulf Sulphur: The Timmins Ontario Mine -...

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February 9, 11: Insider Trading Cases: Texas Gulf Sulphur: The Timmins Ontario Mine Martha Stewart (A) Note on Insider Trading Study Questions : 1. Did any of the following individuals in Texas Gulf Sulphur violate a fiduciary or other duty of trust and confidence: Darke, Stephens, Crawford, Coates, Huntington, and Lamont? Did any of these individuals engage in insider trading? 2. What ís your assessment of the Texas Gulf Sulphur press release of April 12? 3. Did Martha Stewart engage in insider trading? If so, by what theory? Requirements to be considered inside trading (traditional theory): 1. Material or non-public information 2. Information acquired in violation of a duty Temporary insider: - Waksal: traditional inside trading
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Unformatted text preview: Tipper/Tippee-Bacanovic must owe duty to someone for information he came by (tipper) and must get value from giving info to Martha (his duty would have to be to Merill Lynch in order to be traditional)-Martha would be tippee liable for trading on the information that Waksal is selling Misappropriation:-Bac violated duty to Merill-Basis for tipper/tippee liability-Complicated (would go to supreme court) 4. Has Martha Stewart violated any of her responsibilities to investors in MSLO? 5. From a public policy perspective, what is your appraisal of the U.S. system of restrictions on insider trading? Why have many countries historically allowed insider trading?...
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