Originally,courts Did Not Consider Insider Trading as Harmful to the Corporation

question 36

True/False

Originally,courts did not consider insider trading as harmful to the corporation and so it did not consider it a breach of the fiduciary duty owed to the corporation.

---

Definitions:

Medulla

A section of the brainstem responsible for regulating vital body functions such as heart rate, blood pressure, and respiration.

Breathing

The process of taking air into and expelling it from the lungs to facilitate gas exchange with the internal environment, mainly by bringing in oxygen and flushing out carbon dioxide.

Cerebral Spinal Fluid

A clear, colorless body fluid found in the brain and spinal cord, acting as a cushion for the brain's cortex, providing basic mechanical and immunological protection.

Shock Absorber

A mechanical device designed to absorb and dampen shock impulses in vehicles and machinery, contributing to smoother movement.