FLSB-Business ethics-Discussion question on insider dealing

FLSB-Business ethics-Discussion question on insider dealing...

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Topic 6--Business Ethics--Discussion questions on insider dealing Question 1-Insider dealing Happy Ltd is a listed company that has diverse business activities. Mark is an employee working in the accounts department of the company. One afternoon during lunch Mark had heard from a director that the company just a few hours ago had heard from Malaysia that the Malaysian government had approved of an important joint venture. The director had stated that the information had come from the managing director, Mr. Happy himself. The evening on his way home Mark had met June, his girlfriend, and had told her that as soon as the Malaysian Joint venture was announced the share of Happy Ltd would pick up in price as Happy Ltd was the only Hong Kong company that had received the approval for the venture. He wanted June to obtain further shares and sell them when the shares reached the peak. June made a profit by selling the Happy shares a few days later. It has also transpired that Unhappy, a director of Happy Ltd, had purchased the shares in the company from Mr. Sad, a shareholder, without informing him of the venture in Malaysia. Unhappy had then made a profit from the sale of the shares.
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