John is a corporate officer and director at ABC Cooling, Inc. John is sitting at the

country club one evening after playing golf and tells his friends that he is aware an

international cooling and heating company has approached ABC to purchase the

business and everyone should buy as many shares of the company as possible. The

next day, Adam, who was at dinner with John the prvious night, purchases all of the

shares of ABC Cooling, Inc. that are available. The next week, a public announcement

is made that ABC Cooling, Inc. is being sold to Home Cooling and Heating, Inc. for a

very large sum. Is there anything wrong with what Adam did? Explain. Do you believe

Adam should be able to use any information he obtains, from any source, even it

results in his obtaining an unfair advantage? Be sure to explain

why

you feel its right

or wrong.