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Why does insider trading breach the board of directors fiduciary duty

Asked Mar 11, 2010, 08:13 PM — 1 Answer
The Board of Directors and executive officers of a corporation have a fiduciary duty to safeguard the interests of their shareholders.
1.Why does insider trading breach that duty?

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ROLCAM Posts: 1,437, Reputation: 245
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Mar 11, 2010, 09:14 PM
The whole idea of share trades is to have a Market as free as possible.
This means that information about the shares is the same for everyone.
The concept of insider trading goes against the grain of the primary purpose.
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