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Question: Franken, president of Monarch Pharmaceuticals

Franken, president of Monarch Pharmaceuticals Incorporated, was one of only three persons who knew that one of the firm’s experimental drugs had just been approved by the federal government. The drug had been found to cure several serious diseases. As soon as news of the approval became public, Franken reasoned, the price of the firm’s stock would increase substantially. He arranged with a friend to buy thousands of shares of the company’s stock, hoping to sell at a profit after the price increased as a result of the good news. Can Franken be prosecuted for his actions?
Principle of law:


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