Question

Discussion Questions

1-Discuss whether it would be unethical to buy a stock based on some information you found in the trash that had been thrown away by mistake.

2-Suppose you are the printer who has been given the job of preparing the official announcement of the FDA report. Can you use that information for personal gain? Why or why not?

3- Some argue that insider trading brings information to the market more quickly and thus is morally acceptable on the grounds of efficiency. Do you agree with that argument? Why or why not?

Answer 1

1-Discuss whether it would be unethical to buy a stock based on some information you found in the trash that had been thrown away by mistake.

A. The information based on which the stock is purchased cannot be unethical just because of the reason that the information is found in trash. Also, it is not done with the intention to deceive others.

B. The fact to be kept in mind while using the information is to validate if we can infer anything from the information we got.

C. The information we found should be used in conjunction with the other information that is publicly available before we act upon.

2-Suppose you are the printer who has been given the job of preparing the official announcement of the FDA report. Can you use that information for personal gain? Why or why not?

A. Though the report is for official announcement, it cannot be used for personal gain before it is announced to public which can lead to legal suits as it may be considered as a case of information misuse.

B. Once the report is made public, the same an used for any kind of decision making.

3- Some argue that insider trading brings information to the market more quickly and thus is morally acceptable on the grounds of efficiency. Do you agree with that argument? Why or why not?

Insider trading brings more information to the market more quickly because it comes from the top management of the company which is the position to control the company and hence reliable.