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You are sitting on the board of directors of ABC Company that plans to repurchase its...

You are sitting on the board of directors of ABC Company that plans to repurchase its stocks at $80 per share. The current price is $72 per share. You tell your brother in law to buy $5000 shares before the information becomes public. Is the purchase illegal? Why

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Answer #1

You are on the board of directors of ABC. Company that plans to repurchase its stocks at $80 per share. The current price is $72 per share.

Yes, telling your brother in law to buy $5000 shares before the information becomes public is illegal purchase

Because it is illegal practice of trading for one's own advantage through having access to confidential information and shall not be done.

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