Modigliani's brother, Sharpe, works for a large joint stock bank. Sharpe told Modigliani that his bank is about to announce the loss of a major client. Modigliani has a substantial investment in the stock of the bank.

Note: Modigliani quickly sells his stock before this information is made public.

a) Do you approve/disapprove of the action? Why?

b) Would you do it yourself? Do you think others would do it? Why or why not?