Business, 25.07.2020 01:01 dee1334

ETHICS David Sokol worked at Berkshire Hathaway for legendary investor Warren Buffett, who is renowned not only for his investment skills but also his ethics. Bankers suggested to both Sokol and the CEO of Lubrizol that the company might be a good buy for Berkshire. Sokol then found out that the CEO of Lubrizol planned to ask his board for permission to approach Berkshire about a possible acquisition. Sokol purchased $10 million worth of Lubrizol stock before recommending Lubrizol to Buffett. Sokol mentioned to Buffett "in passing" that he owned shares of Lubrizol. Buffett did not ask any questions about the timing or amount of Sokol's purchases. Sokol made a $3 million profit when Berkshire acquired Lubrizol. Required:
a. Did Sokol violate insider trading laws?
b. Did he behave ethically?
c. What about Buffett?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 20:20, martinezarielys17

As you have noticed, the demand for flip phones has drastically reduced, and there are only a few consumer electronics companies selling them at extremely low prices. also, the current buyers of flip phones are mainly categorized under laggards. which of the following stages of the industry life cycle is the flip phone industry in currently? a. growth stage b. maturity stage c. decline stage d. commercialization stage

Answers: 2

continue

Business, 23.06.2019 01:00, gabbytumey

As more people migrated west during the gold rush, what do you think happened to the demand curve in most western markets, holding all else constant? a. there was no shift, nor any increase or decrease in quantity demanded. b. there was no shift, but there was a decrease in quantity demanded. c. the demand curve shifted to the left. d. the demand curve shifted to the right. e. there was no shift, but there was an increase in quantity demanded.

Answers: 2

continue

Business, 23.06.2019 02:00, lexiemornelas

Donna and gary are involved in an automobile accident. gary initiates a lawsuit against donna by filing a complaint. if donna files a motion to dismiss, she is asserting that

Answers: 2

continue

Business, 23.06.2019 05:30, Juanga122

Scientists developed the first successful human cell culture in vitro (grown in a lab) in the 1950s by removing cancer cells from a woman. this concept has allowed modern scientists to successfully grow organs. which of the following answers bestdetermines why there was success? neurons send a signal to the cell to multiply. a large blood supply to the cell allows enough nutrients for growth. cells are the basic unit of life and thus can regenerate if in a controlled environment. cells cannot reproduce on their own, and the scientist manipulates them to grow.

Answers: 1

continue

You know the right answer?

ETHICS David Sokol worked at Berkshire Hathaway for legendary investor Warren Buffett, who is renown...