Discussion Question

Unit 5 Discussion

Gianna Tuck is an accountant for Post Pharmaceuticals. Her duties include tracking research and development spending in the new product development division. Over the course of the past six months, Gianna notices that a great deal of funds have been spent on a particular project for a new drug. She hears through the grapevine that the company is about to patent the drug and expects it to be a major advance in antibiotics. Giana believes that this new drug will greatly improve company performance and will cause the companys stock to increase in value. Gianna decides to purchase shares of Post in order to benefit from this expected increase.

Required

What are Giannas ethical responsibilities, if any, with respect to the information she has learned through her duties as an accountant for Post Pharmaceuticals? What are the implications to her planned purchase of Post shares?