Imagine that a press release has a significant negative impact on your firms stock price, reducing its
Question:
Imagine that a press release has a significant negative impact on your firm’s stock price, reducing its value by more than 50% in a single day of trading! You gather from conversations in the hallway that the company’s fundamentals remain strong, aside from this one-time event. You see this as a great opportunity to buy stock. Is it appropriate to act on this and to purchase company stock at its (temporary) low price, in hopes of selling it at a profit once the price rebounds? Does it make a difference whether you buy one hundred shares or one thousand shares? Is it OK to discuss the
“dilemma” with family members and friends? What should you do if you do mention it to family and friends but then later feel uncomfortable about it?
Step by Step Answer:
Business Ethics Decision Making For Personal Integrity And Social Responsibility
ISBN: 9781260260496
5th Edition
Authors: Laura Hartman, Joseph DesJardins, Chris MacDonald