a. Discuss the ethical issues of the broker’s recommending the same four stocks to Nick, his father, and his grandfather. 

b. Why might these four stocks be a good investment for Nick, but not for his father or his grandfather? Why might all four stocks be a good investment for all three of them?

Nick, a recent college graduate, wishes to begin investing to meet some of his financial goals. His father recommends a stockbroker who he says has always given him good advice. Nick’s grandfather has also begun doing business with the same stockbroker as a result of Nick’s father’s recommendation. Over the next several months, the broker recommends four stocks as a must for Nick’s portfolio. Nick buys all four stocks based on this advice. During the family’s annual reunion, Nick, his father, and his grandfather compare their experiences with the same broker. Nick is surprised to learn that the broker recommended the same four stocks to both his father and his grandfather. His father defends the broker by saying that if it is a good stock for Nick, why would it not be a good stock for all of them? Besides, his father says, since the broker’s company does all of the investment banking for the four stocks he recommended, he undoubtedly knows everything there is to know about these four firms.