The Inside of Insider Trading

The video tutorial by Global Ethics Solutions discusses the concept of insider information and insider trading. It explains that insider trading is not limited to high-level executives but can involve any employee with access to non-public, material information. The video outlines the legal implications and ethical responsibilities of handling such information, emphasizing the importance of trust and character in maintaining confidentiality. Employees are advised to consult supervisors or legal counsel when in doubt and to avoid discussing sensitive company information that could influence securities trading.

Who can be considered an insider in the context of insider trading?

• Only family members of employees

• Any employee with access to non-public information

• Only CEOs and executives

• Only stockbrokers

What is strictly prohibited by federal law regarding insider trading?

• Discussing company policies with friends

• Reading financial news

• Using non-public information to trade securities

• Sharing public information with colleagues

What should you do if you are unsure whether information is inside information?

• Consult a supervisor or legal counsel

• Ignore it and continue with your work

• Post it on social media to see if anyone knows

• Share it with a friend to get their opinion

Which of the following is NOT considered inside information?

• Pending litigation

• Information available on the company's website

• New product launches

• Upcoming management changes

What is a key ethical responsibility of an employee regarding inside information?

• To maintain trust and confidentiality

• To use it for personal gain

• To ignore it completely

• To share it with as many people as possible

Why is it important to avoid discussing company trials at a dinner party?

• It is against company policy to talk about work

• It might bore the guests

• It could lead to insider trading violations

• It is considered impolite

What reflects an employee's character in the context of handling inside information?

• Their willingness to share information

• Their knowledge of company policies

• Their understanding of ethical boundaries

• Their ability to keep secrets