When you told your former college roommate that you were about to work as a staff auditor on the Engagamatic, Inc. account, your buddy said you half-jokingly, "tell me if you learn anything cool there because I am about to sell all my holdings in that company so I can pay for grad school." Engagamatic, Inc.'s stock trades on the New York Stock Exchange.
During the course of the audit, you did in fact learn that your client is going to report far higher revenue growth and operating cash flow growth than a consensus of stock analysts predicted. As a result, you're tempted to tell your friend so she will not sell her stock before Engagamatic releases this surprising upside news.
a. Would it be legal to tell your friend?
b. Would anyone be hurt if you tell your friend?
c. Would it be ethical to tell your friend?