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Remember Enron and Andersen!

You work for a mid-sized company that has about 700 employees. It is Wednesday afternoon. You learn from a reliable source that your company has just been bought out, but the public announcement will not be made until Friday afternoon. The company’s stock is currently selling at $15 per share. It will certainly jump to $20 within hours of the announcement. You and your spouse have been saving over the past year to buy a house, and have a sizable nest egg of nearly $20,000 in the bank. Your company already has over 20 million shares of its stock outstanding, and tens of thousands of shares are traded every day. No one is likely to notice if an employee were to buy 1000 shares. What do you do? Explain your actions and reasons in writing.




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