Milton Brown Is a Business Consultant Who Obtained Confidential Information

question 54

Essay

Milton Brown is a business consultant who obtained confidential information about a publicly traded corporation which,if made public,would cause the stock to rise dramatically.Milton formed a private corporation with himself as the sole shareholder and director and had that corporation purchase stock in the publicly traded corporation.When the news that Milton was already aware of became public,the price of the publicly traded shares increased dramatically and the corporation Milton had formed sold its shareholdings at a substantial profit.Milton is subsequently charged with insider trading,that is,using confidential information for his own personal gain.His defence is that the gain was made by his corporation and not by himself and that his corporation is a separate legal entity.Will Milton's defense be successful? Give the legal basis for your answer.

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Definitions:

Poor Countries

Nations with low levels of socioeconomic development, characterized by low incomes, high poverty rates, and limited access to basics.

Sociological Imagination

The ability to see the link between individual experiences and the larger society, as conceptualized by C. Wright Mills.

Global Impact

The effects or consequences of actions, events, or conditions that have a wide-reaching influence across the world.

Consumer Habits

Patterns or tendencies in purchasing behavior displayed by individuals or groups as they buy products or services.