Keith Loeb and his wife own stock in Waldbaum, Inc., a publicly traded company in the supermarket business.Robert Chestman is Loeb's stockbroker.Chestman is aware that Loeb's wife is the granddaughter of Julia Waldbaum, a member of the board of dierctors of Waldbaum and the wife of its founder.Julia is also the mother of Ira Waldbaum, the president and controlling shareholder of Waldbaum.During a four-year perios, Chestman executed several transactions involving Waldbaum's stock for Keith Loeb.Subsequently, Ira Waldbaum agreed to sell Waldbaum to a buyer which would result in a stock purchase agreement selling the Waldbaum shares for $50 per share.Ire told three of his children about the pending sale and admonished them to keep the news quiet until a public announcement.He alos told his sister, Shirley Witkin, about the sale and cautioned her not to discuss it because it was to remain confidential.Ignoring that advice, Shirley told her daughter, Susan, that Ira was selling the company.Shirley warned her daughter not to tell anyone except her husband, Keith Loeb, because disclosure could ruin the sale.The next day Susan told Keith about the pending sale, but told him not to tell anyone.

The following day, Keith Loeb says he talkeWaldbaum was about to be sold at a substantially higher price than its market value.Loeb asked Chestman what he thought he should do, and Chestman responded that he could not tell Loeb what to do in a situation like this.After the phone call, Chestman bought 3,000 shares of Walbaum at $24.65 per share and purchased an additional 8,000 shares for his clients with 1,000 of those shares going to Keith Loeb.

Did Keith Loeb act ethically with regard to what he told Chestman ? Did Robert Chestman act ethically with regard to the information he receiver from Loeb?Pick one of the ethical standards offered in the text and show how that standard applies to this situation.