Question

Ethical Considerations. Would it be ethical for you to write in your personal blog about the positive outlook on a stock that you own, without telling readers that you own the stock? Why or why not?

Answer 1

No, it is not ehical to write positively about the stock which a person is holding without disclosing the fact of his holding. Because such a positive outlook of a particular stock will influence the readers, followers to buy such stock depending on the outlook given in the blog ,which inflates the price of the stocks in the market out of ungenuine reasons. It doesnot mean that person should not speak positively about the stock, but, before doing so,he has to disclose his holding in such stock, to enable the readers analyse all the facts before coming to a true and fair picture of the future prospectus of the stock.

It creates opinion that the person wantedly projecting a positive outlook of the stock which he is holding, so that he can exit his position when readers get influenced by his words and inflate the price of the stock.

Hence in any case whether before giving postive outlook or negative outlook on a stock, the holding of such person has to be disclosed in order to maintain the ethical standards.