St. Genevieve Petroleum Corp. is a public, independent oil producer. St. Genevieve's year-end is June 30. In February 2014, company geologists discovered a pool of oil that tripled the company's proven reserves. The March 31, 2014, interim financial statements did not disclose the new pool of oil. During February and March 2014, St. Genevieve's managers quietly purchased most of its shares. The June 30, 2014, annual financial statements did disclose the new pool of oil, and the company's share price increased from $6 to $48.
Requirements
1. Did St. Genevieve's managers behave ethically? Explain your answer.
2. Identify the fundamental qualitative characteristic relevant to this situation.
3. Who was helped and who was harmed by management's actions?