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Ethical Ramifications of Insider Trading

A data processing analyst for a research supplier finds that a preliminary computer run of survey results shows that consumers love a client's new product. The employee buys a large block of the client's stock. Discuss the ethical ramifications of this decision. Which research participant or participants will be harmed by this action?

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From an ethical standpoint, we'd be looking at the same ethical ramifications for federal law violations. The employee can't do this. It is a direct violation of securities laws and considered insider trading. Any time an individual, including an employee, makes investing decisions including the purchase or sale of stocks based on information that the individual has learned but that has not yet been released to the public, it is considered insider trading. The ethical ramifications include the same as for law ...

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A data processing analyst for a research supplier finds that a preliminary computer run of survey results shows that consumers love a client's new product. The employee buys a large block of the client's stock. Discuss the ethical ramifications of this decision. Which research participant or participants will be harmed by this action?

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