Question

1. In the article entitled “Financial Journalism, Conflicts of Interest and Ethics: A Case Study of Hong Kong”', the author uses the “social contract approach” to examine issues related to ethical responsibility in financial journalism.
   1. Briefly describe the meaning of the three ethically questionable practices raised by the author, namely market manipulation, insider trading, and nondisclosure of interests, as they apply to journalism.                              
   2. Do you think it is unethical for a journalist to report on a stock or security that he or she owns without disclosing it? Justify your answer with reference to the three ``ethically questionable practices'' mentioned above.                      

Answer 1

Answer a:

1. Market manipulation: The word manipulation indicates that some use or forcefull interference is done to again unethical success in the share or stock market. Market manipulation thereby helps in creating artificial and incorrect raise or fall in price of shares or stocks. Market manipulation also affects the elasticity of demand.

2. Insider Trading: First and foremostly, insider trading is an illegal practice.Trading of company's shares in which public are substantially ineterested based on material and information not available to public is insider trading.Anyone who is sentenced to insider trading have to bear rigorous imprisonment..

If trading in shares which are very risky is avoided then the insider trading can be curbed to some extent.

3. Non disclosure of information : Opposite to disclosure of interest is no disclosure of interest..The directors or other specified persons shall disclose their interest in order to avoid any conflict of interest. The Companies Act 2013 also includes stringent provisions to avoid non disclosure of interest.