Inside Information Jim Brock was an accountant with Hubbard Inc., a large corporation with stock that was publicly traded on the New York Stock Exchange. One of Jim’s duties was to manage the corporate reporting department, which was responsible for developing and issuing Hubbard’s annual report. At the end of 2008, Hubbard closed its accounting records and initial calculations indicated a very profitable year. In fact, the net income exceeded the amount that had been projected during the year by the financial analysts who followed Hubbard’s stock.

Jim was pleased with the company’s financial performance. In January 2009, he suggested that his father buy Hubbard’s stock because he was sure the stock price would increase when the company announced its 2008 results. Jim’s father followed that advice and bought a block of stock at

$25 per share.

On February 15, 2009, Hubbard announced its 2008 results and issued the annual report. The company received favorable press coverage about its performance, and the stock price on the stock exchange increased to $32 per share.

Required What was Jim’s professional responsibility to Hubbard Inc. concerning the issuance of the 2008 annual report? Did Jim act ethically in this situation?