Explore BrainMass

Explore BrainMass

    Ethical Ramifications of Insider Trading

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com June 4, 2020, 2:59 am ad1c9bdddf
    https://brainmass.com/business/business-ethics/ethical-ramifications-insider-trading-491761

    Solution Preview

    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 ...

    Solution Summary

    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?

    $2.19

    ADVERTISEMENT