Chapter 13, Problem 3BTN

To determine

Concept Introduction:

While conducting a business, many times people come across situations in which they have to take decisions. At times, the decisions can be ethical and in favour or all, people, business society. But when the decisions or the choice of actions goes against the favour of people, society or business, these decisions are treated as unethical.

One unethical practise that appears in business is insider trading.

Insider trading can be defined as an illegal practice of trading on the stock or purchasing or selling of a stock by using information which is not public. If a person takes the advantage of some confidential information of the company and buys or sell the common stock of the company, it will be treated as insider trading. The implications can let person to be punished by the law as well. It may include sending the person to jail, charging penalty, and civil and criminal fines as well.

To comment and discuss:

Harriet’s ethical responsibilities about the situation involved and the implications of her planned purchase of New World shares.