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View Full Version : Why does insider trading breach the board of directors fiduciary duty


glendajo30
Mar 11, 2010, 09:13 PM
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?

ROLCAM
Mar 11, 2010, 10:14 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.