Ans: Insider trading meaning: When a person takes an advantage of price sensitive information known to him with a purpose of private gain is called insider trading
Case 1. From the above case Mr.Pete Rose had gained from betting onthe failure of team.Insider trading is unethical because it involves breach of contract.Mr Pete rose was having acces to significant infromation about his team poor perfromance. He was not expected to misuse suc information for his prsonal benefit. He was found guilty for an illegal act and must be punished by way of suspension,dismissal or any other suitable action.
Case 2. From the above case study of Enron, it is clearly understood that managers has used insider information about Enron and used it for their personal gain. Managers should have hold a formal press conference and informed about the company to the public rather than taking advantage of the information. In this case the manager of the firm has used the information for his private gain. It is an illegal and unethical act performed by them for which they have to be punished as per law.
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