Can SEC/US extradite for cause?Here is Perplexity AI's view on the ethical & legal issue from insiders profiting from the drop in price of the stock of a company that the directors are supposed to be advising for success, not bankruptcy!!!!
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A director of a publicly traded company could theoretically enter into an equity swap contract to profit from their company's stock declining in value. However, such actions raise significant legal and ethical concerns. Insider trading laws and corporate governance rules often prohibit directors from using non-public information for personal gain, including through derivative instruments like equity swaps . Additionally, such transactions may require disclosure under securities regulations, depending on the jurisdiction and the structure of the swap .