Choose the statement that gives the most accurate description of etiquette:
a. the rules of etiquette are a fundamental branch of morality
b. conformity with the rules of etiquette is sufficient for moral conduct
c. etiquette refers to a special code of social behavior or courtesy
d. the rules of etiquette are backed by statutory law
Answer:
According to the Supreme Court,
a. there is nothing improper about an outsider’s using information, as long as the
information is not obtained from an insider who breaches a legal duty to the
corporation’s shareholders.
b. anyone buying/selling stock based on nonpublic information is guilty of inside
trading.
c. insider trading violates the interstate commerce clause of the Constitution.
d. it should be left up to the company, not the government, to decide whether or not to
prohibit insider trading.
Answer: