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Jaz plc is listed on the London Stock Exchange. Kip works for Jaz plc as an accountant. Whilst drawing up the annual accounts, Kip noticed that Jaz plc’s profits were better than anyone could have expected. As a consequence of this knowledge, he bought shares in Jaz plc before its good results were announced. He made a substantial profit on the share dealing. Kip also told his friend Lu about the results before they were announced. Lu also bought shares in Jaz plc.
Here Kip has also committed the offence of disclosing inside info to his friend lu na?In solution its that written that kip encouraged his friend , however, if we observe wording of questions its mentioned that kip told his friend about results before they were announced. So in my opinion kip has committed the offence of disclosing inside info to his friend. Am I right?
So, am I correct in thinking that the printed solution says that Kip is guilty for encouraging his friend?
And that you are concerned that he isn’t apparently, according to the printed solution, guilty of disclosing unpublished price-sensitive information?
So, basically, you’re worrying about the semantics of whether “encouraging” is or is not the same as “disclosing”
Strictly speaking, yes, Kip has committed the offence of unlawful disclosure …
… as well as buying shares for his own benefit …
… as well as encouraging others to buy shares
Not been a good day for Kip has it?!
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