Ethics and Equity}

Ivan and Gordon are middle managers at a large, publicly traded corporation. Ivan tells Gordon that the company is about to sign an exclusive product distribution agreement with a small, publicly traded manufacturer. This contract will quadruple the manufacturer's revenue. Ivan mentions to Gordon that the manufacturer's share price will likely go "through the roof." Gordon says, "Maybe we should buy some shares."

Required:

Are Ivan and Gordon being smart, being unethical but not breaking the law, or breaking the law?

\section*{Case