Think about: what limits should there be on insider trading? In the USA, Pete Rose was a popular baseball player, and then manager, who was punished for betting on his own team to win. Should Pete Rose be allowed to profit from betting on the success of a team he managed? Should Pete Rose be punished more harshly if he profited from betting on the failure of a team he managed? In the Enron case, several managers sold all their Enron stock about an hour before it became public knowledge that the company was not worth as much as everyone thought. Should a manager be punished for acting prudently based on knowledge they have discovered honestly only because the general public does not have that knowledge? Should managers be required to disclose private information they have that might influence the investment decisions of the public? Also, address the question of timing about the dissemination of information: is it enough to share information on a public website or should a formal press conference be required?

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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