According to the class overheads and basic ethics, which one of the following assertions about insider trading, which is against the law, is true? Insider trading is legal and should not be considered as a potential approach to investing 000 Insider trading is illegal and should be considered as a potential approach to investing Insider trading is legal and should be considered as a potential approach to investing Insider trading is illegal and should not be considered as a potential approach to investing

According to the AICPA Code of Professional Conduct, omitting material information on a financial disclosure is just as unethical as actively misleading investors with false information on a financial disclosure.   Select one: True False

Which of the following arguments supports the view that regulation is not necessary, particularly to the extent that it currently exists? Select one: a. Markets for information are not efficient and therefore produce a sub-optimum amount of information, given the problem of 'free riders'. b. Accounting information is like any other good, and people will be prepared to pay for it to the extent that it has a use. c. Investors need protection from fraudulent organisations that may produce misleading information. d. Information asymmetry exists because not everyone has the same power over resources to obtain the information they need.

Unethical acts are generally committed by unethical people. What are some things companies can do to help ensure that their employees act ethically?