Question -

Megan McClure is the chief financial officer at Computer Electronics, Inc. In this capacity she attends all monthly meetings of the board of directors. A special meeting was called by the board to discuss substantially increasing the amount of cash dividends paid to stockholders this year. The board voted unanimously to increase the dividend.

Later that night, Megan called her uncle and hinted around that Computer Electronics was going to make stockholders very happy. Her uncle did not own any stock in Computer Electronics, but he purchased 500 shares the next day.

1. Megan do anything unethical?

2. Would your opinion differ if Megan specifically stated that the dividends to be paid by Computer Electronics would be substantially increased?

3. What do you think Megan's boss (i.e., a member of the board of directors) should do if he or she finds out what Megan said to her uncle?