|
|
Article: The insider trading debate.
- Article from:
- Economic Review (Atlanta, GA)
- Article date:
- July 1, 1997
- Author:
CopyrightCOPYRIGHT 1997 Federal Reserve Bank of Atlanta. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
BOX 1 Insider Trading at Texas Gulf Sulphur Company
Insider trading not only concerns scholars and regulators but also attracts the attention of the general public. To get a practical idea of insider trading, consider the famous Texas Gulf Sulphur Company case (Manne 1966, 49).
Texas Gulf Sulphur Company was established in 1909. In 1959 its exploratory prospecting with magnetic surveying equipment produced some evidence that valuable deposits of copper, zinc, and silver might exist in an area of Ontario. In 1963 the first drilling confirmed the possibility, and the commercial value of the find proved to be enormous. The company instituted tight control ...