Sparkly Gold Mine Ltd. is a gold mine in northern Ontario. In February 2020, company geologists discovered a new vein of gold-bearing ore that tripled the company’s reserves. After this discovery, but prior to disclosing the new vein to the public, top managers of the company quietly bought most of the outstanding Sparkly Gold Mine Ltd. shares for themselves personally. After the announcement of the discovery, Sparkly Gold Mine Ltd.’s share price increased from $4.00 to $30.00.

Required

1. Did Sparkly Gold Mine Ltd. managers behave ethically? Explain your answer.

2. Who was helped and who was harmed by management’s action?