What is the connection between Rajat Gupta and insider trading?
What will be an ideal response?
Rajat Gupta, a former McKinsey chief executive who served on Goldman Sachs' board, provided Raj Rajaratnam with important insider tips. Often within seconds after a Goldman Sachs board meeting ended, Gupta called Rajaratnam. In one of these phone calls, Gupta revealed the impending multibillion-dollar liquidity injection by Warren Buffett into Goldman Sachs during the midst of the global financial crisis. This information allowed the Galleon Group to buy Goldman Sachs shares before the official announcement about Buffett's investment was made, profiting from the subsequent stock appreciation. In another call, Gupta informed Rajaratnam that the investment bank would miss earnings estimates. Based on this insider information, the Galleon Group was able to sell its holdings in Goldman Sachs' stock prior to the announcement, avoiding a multimillion dollar loss.
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A. qualitative method B. method equivalence C. cross-cultural equivalence D. nonequivalence
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Indicate whether the statement is true or false
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A. Beneficial tool used only to minimize the negative effects of a public issue for the organization's advantage. B. Confusing process that is rarely used to help top management within an organization. C. Beneficial tool used only to maximize the positive effects of a public issue for the organization's advantage. D. Systematic process companies use when responding to public issues that are of greatest importance to the business.