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Business Ethics For Selling Potentially Collapsing Stocks
Ethics Question.
If you are a stock broker who owns a million dollar worth of stocks and with your research, you find out that these stocks will be worth zero in a few days. Can you sell those stocks at a discount in the open market to unsuspecting customers who will surely be bankrupt in a few days. If you do not sell, then you will be bankrupt.
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1 Reply
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Business Ethics For Selling Potentially Collapsing Stocks
updated 1 year, 3 months ago
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Unless you have insider information, which is illegal to be used for trading to begin with, there is nothing unethical about selling stock in the open market even when you think that it will decrease in value in the near future. Your research and analysis may lead you to believe that a particular stock might decrease in value, while someone else’s research might lead them to believe just the opposite. Sometimes people also want to buy declining instruments as part of their strategies. This is what creates an open market where everyone can trade freely according to their own preferences.
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