Question

This video-based ethics case is titled "Trading Places." Managers are regularly exposed to nonpublic company information but not all managers choose to use nonpublic information for personal gain. This case explores the experiences of a day trader who was a member of a 17-year insider trading ring that resulted in profits in excess of $37 million. We will use this case as a source of a comprehensive and extensive discussion this week.

Please access the e-case by following these instructions. Student Access Instructions The instructions include one username and one password to be used by the entire class.

Once you have logged in, view the case titled "Trading Places." When you have finished reviewing the videos, please respond to the questions posted below. Please note that this discussion is worth 50 points so I hope to see some serious thought and constructive ideas communicated in your posts. There is a great deal of opportunity for an excellent discussion this week, and I look forward to reading your ideas.

Decision making is a critical skill for today’s manager. In your opinion, what factors impacted Garrett’s decision to commit fraud? If you were Garrett, how would you have responded?

Do you believe that Ken Robinson, Garrett’s friend, violated their friendship by wearing a wiring and implicating Garrett in the scheme?

Do you think regulation can deter insider trading? Why or why not?

Do you think Garrett’s loyalty to his friend (Ken Robinson) was the driving force behind his decision to commit insider trading?

If you were faced with the same opportunities as Mathew Kluger by having access to confidential information, would you engage in insider trading?

Once you have responded to the posted questions, please respond to two of your classmates. Please understand that I am not looking for one specific "right" answer or "wrong" answer here. I really want to encourage all of you to think analytically and critically about these scenarios, and even if you don't feel comfortable with your ideas or if you disagree with your classmates, put your thoughts out there so we can discuss them. Everyone's ideas are welcome, and I hope that you will invest some time and effort into this activity. It will make it more enjoyable and valuable for all of us!

Answer 1

If i gave a honestly answer then Yes if get any opportunity to involve in insider trading yes i want to involve and earn a huge profit because if we see today, money is more important for a person or even we can say that there are so many people who want to earn money in any how. they will do any thing for that money.

Point 1. If I'm Garrett or I'm suffering from a financial crunch i will defenatily go for it because i know there is lesser chance to explore my fraud. there are so many reason yeah I know this is totally unethical. but we also have to thing sometime we will take huge step out in few minutes just because of our responsibilty towards our family. So on the other hand if I'm not suffering any financial sterss then I cannot do any unethical activity. I'm talking about that scenario where I'm able to provide each and every thing to my family. but this scenario is for only those person how can take appart from there greediness.

Point 2. Yes we can say that Ken Robinson voilated their friendship. we also have to see in the positive way may be Ken seen Garrett's family problems and try to involve and help their friend to get out of it. because we have to think the situation in the both positive as well as in the nagitive manner. then will we will reach a conclusion.

Point 3. Offcourse regulation can deter insider trading to some extend. because today world a punishment can change the life of a person. or we will know their are so many strict reguations for insider trading cases like Multiple times penalty or Imprisonment etc. so before doing any mulpractises in the organisation once a person at leat think about these penalty or Imprisonment. If we thing on the other hand then yes may be regulation cannot deter the greediness of a personits totally vary person to person. How much a person will take risk of their life.

Point 4. NOT AT ALL , its totally a person who Know what I'm doing wrong with me you should Know About youself you can't blame to someone for fraud in which you enter by your own mind. And if we talk about loyality firstly Garrett have to loyal with their own family and think what happen if the fraud is concluded with a Life time imprisonment.

Point 5. well right now No, because currently i'm in a good situation where i can gave each and every thing to my parent my brother and sister. yeah my opinion may be change if I'm a suffering a financial crunch in which i need money in any how. so I will defenatily do every possible thing to feed my family.

In the end i have to say that these are my view points as I earlier said that its to depent or varry person to person how a person can deal the situation.Or if talk about the Insider trading its an unethical practice or I would like to say its a Crime because you are playing with the family of Each and every shareholder in he market who are retails investor who are do this trading to feed their family I request each and every person here to Avoid these type of malpractices.

dear Student,

I try to express my view in this answer I really hope you will accept this answer in a positive way. If you like my view then please gave me positive feedback so I can write more for other.

Thanks

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