John is a corporate officer and director at ABC Cooling, Inc. John is sitting at the country club one evening after playing golf and tells his friends that he is aware an international cooling and heating company has approached ABC to purchase the business and everyone should buy as many shares of the company as possible.
The next day, Adam, who was at dinner with John the prvious night, purchases all of the shares of ABC Cooling, Inc. that are available.
The next week, a public announcement is made that ABC Cooling, Inc. is being sold to Home Cooling and Heating, Inc. for a very large sum. Is there anything wrong with what Adam did? Explain.
Do you believe Adam should be able to use any information he obtains, from any source, even it results in his obtaining an unfair advantage? Be sure to explain why you feel it's right or wrong.