A problem in the career field- Finance - Assignment Example

arguments that oppose the practice and support the practice in order to provide a well-balanced analysis of whether the activity should be allowed to continue in contemporary finance. The article suggests that this activity potentially gives some investors an unfair advantage which disrupts the efficiency of a free market economy. On the other hand, there are other proponents of insider trading that suggest the practice enhances entrepreneurial innovation and creativity. Ma & Huey-Lian suggest that the reason for this conflict is that there is no solid definition of what actually constitutes insider trading activities, which leads to irrational judgments that the practice is unethical.

In an attempt to rectify this confusion, the authors provide a rational definition to assist the reader in determining whether we should still, today, consider the practice unethical and immoral. The authors of this article point out that it is common practice for investors to buy large quantities of a company’s stock in order to gain control over voting rights and corporate decision-making. It is common, in the future, for buyers of common stock to sell these securities as a means of diversifying one’s personal financial portfolio.

Ma & Huey-Lian offer that there is nothing unethical or immoral about this practice since it is a widely-accepted practice in the investment world. Whether or not the investor bought the stock based on their own evaluations and perceptions or through insider-generated knowledge would then seem to be irrelevant in determining the morality of the activity. The investor would still own majority stock in the company, which gives them control, and always have the right to sell these products when they are no longer satisfied the investment is conducive to their financial needs.

In concluding remarks, the main point of this article is to highlight that ethics are not universally-endorsed. The authors make a special point to highlight that before society