Back to Chapter 9 (Accounting Principles). Gladewater Petroleum Company is an inde- pendent oil producer in Gladewater, Texas. In February, company geologists discovered a pool of oil that tripled the company's proven reserves. Prior to disclosing the new oil to the public, top managers of the company quietly bought most of Gladewater's stock as treasury stock. After the discovery was announced, Gladewater's stock price rose from $7 to $52. Required 1. Did Gladewater managers behave ethically? Explain your answer. 2. Identify the accounting principle relevant to this situation. Review Chapter 9 if necessary. 3. Who was helped and who was harmed by management's action?