Managerial Finance

Ethics CaseInsider Trading: Have I Got a Stock Tip for You!

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?

Note that each question should be answered in a minimum of 200 - 300 words.