Ethical Issues Ethics and Insider Trading

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febwna1970

Business Finance

MBA FP 6014 Financial Accounting

Description

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    Overview

    Write a 3- to 5-page essay about the ethical and financial implications of insider trading.Note: Some of the assessments in this course build upon each other, so you are strongly encouraged to complete them in the order in which they are presented.
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    Resources

    Suggested Resources

    The resources provided here are optional. You may use other resources of your choice to prepare for this assessment; However, you will need to ensure that they are appropriate, credible, and valid. They provide helpful information about the topics in this unit. The MBA-FP6014 – Financial Accounting Library Guide can help direct your research. The Supplemental Resources and Research Resources, both linked from the left navigation menu in your courseroom, provide additional resources to help support you.

    Additional Resources for Further Exploration

    You may use the following optional resources to further explore the Questions to Consider and assessment topics.The following resources provide relevant financial accounting methods and practices.
  • Assessment Instructions

    Based on your own experience and knowledge with financial reporting, planning, and decision making, develop conclusions and explain the ethical implications of financial decisions within an organization. You may need to do additional research on the implications of using insider information (for example, the case of Martha Stewart) to help you complete this assessment.Write an essay in which you respond to the following:
    • Why is insider trading considered unethical? Keep in mind that some individuals do not see anything unethical about it, even though it is a criminal offense.
    • Would allowing insider trading, even if it were ethical, hinder the operation of the stock market in raising capital for new and existing companies? Explain.
    You must use two or more scholarly sources in your essay to support your responses.

    Additional Requirements

    • Length: Your essay should be 3–5 typed, double-spaced pages, including a title page and references.
    • Written communication: Written communication should be free of errors that detract from the overall message.
    • Style and formatting: Use current APA style to format your essay and cite your references. You must use at least two references in your essay.
    • Font and font size: Times New Roman, 12 point.
    Ethical Issues: Ethics and Insider Trading Scoring Guide
    VIEW SCORING GUIDEUse the scoring guide to enhance your learning.

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Explanation & Answer

Hi there! Please find attached

Running head: ETHICS IN INSIDER TRADING

Ethics in Insider Trading
Name
Date

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ETHICS IN INSIDER TRADING

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Ethics in Insider Trading

Insider trading is widely considered to be unethical and this is then considered illegal. In
order to understand the immorality of this act, it is necessary to understand how this act of
insider trading takes place. Doran (2012) explains that insider trading is a situation where
executives and directors of a company buy or sell their stocks based on important corporate
information that is unavailable to the corporate public. The conflict that commonly arises in the
illegality and legality of insider trading is encompassed in the definition of this process. In order
to understand the ethics in this action, it is necessary to understand that it will all be dependent
on the interpretation and perspectives of one who defines insider trading.
Libby, Libby, and Hodge (2017) have indicated that insider trading has over the past been
given many illegal names and those that engage in this act have been considered to be devoid of
ethical standards. Even so, economic experts have indicated that not all individuals that engage
in insider trading are unethical. In fact, it has been indicated that insider trading is necessary for
investment society. Moreover, ...


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