Question

A major new agency has the following rule concerning stocks its journalists have covered or may cover in the future:

“Journalists of all media must not buy or sell securities of entities about which they have written, commented or reported recently or about which they intend to write, report or comment on in the near future.

Critically evaluate the merit of this rule and the rationale behind it.

Answer 1

The guidelines for journalists to avoid trading of stocks on which they have written, commented,intented to buy or in any way have shown interest, is in line with journalistic ethics code.The intention behind such a move is to keep the reporting unbiased and objective. Journalists having any sort of connection with the stocks on which they are reporting or commenting can raise questions about the aunthenticity of the facts presented. This is also a conflict of interest and hence affects the credibility of the journalist and the media house he/she is associated. Journalism ethics vouch for factual presentation of information without having a leaning towards anyone.