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    glendajo30's Avatar
    glendajo30 Posts: 3, Reputation: 1
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    #1

    Mar 11, 2010, 09:13 PM
    Why does insider trading breach the board of directors fiduciary duty
    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's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    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.
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