Explain great deal of money on transaction


Miriam, a smart and sharp MBA student, is on spring break flying home to see her family. At the airport, there is the usual delay. So, Miriam goes to the nearest airport bar to have a glass of wine. At a table near the bar are some nicely dressed business executives who clearly have had too much to drink and are talking very loudly and annoyingly - but about the merger of their company with a bigger company and how much of the big company's stock they are going to receive in return for their shares for the purchase of their company. Miriam puts down her glass of wine and notes on the cocktail napkin the name of the companies. When she gets home, she immediately calls her broker and tells him to buy shares of stock in the executives' company. The merger takes place and Miriam makes a great deal of money on the transaction. Miriam likely has acted:

Illegally since she traded on inside information.

Illegally since the business executives probably breached a duty of confidentiality.

Illegally since her stock purchase was not a fair one, and as a business student Miriam "should have known better."

Legally since she was lucky, smart, and bold.

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Microeconomics: Explain great deal of money on transaction
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