Business Ethics 3rd Edition by Laura Hartman

Exercise 8

A press release has a significant negative impact on your firm?s stock price, reducing its value by more than 50 percent in a single day of trading! You gather from conversations in the hallway that the company?s fundamentals remain strong, aside from this one-time event. You see this as a great opportunity to buy stock. Is it appropriate to act on this and to purchase company stock? Does it make a difference whether you buy 100 shares or 1,000 shares? Is it OK to discuss the ?dilemma? with family members and friends? What should you do if you do mention it to family and friends but then later feel uncomfortable about it?