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Write a 3- to 5-page essay about the ethical and financial implications of insider trading. Based on your own experience and knowledge with financial reporting, planning, and decision making, develop...

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Write a 3- to 5-page essay about the ethical and financial implications of insider trading.
Based on your own experience and knowledge with financial reporting, planning, and decision making, develop conclusions and explain the ethical implications of financial decisions within an organization. You may need to do additional research on the implications of using insider information (for example, the case of Martha Stewart) to help you complete this assessment.

Write an essay in which you respond to the following:

Why is insider trading considered unethical? Keep in mind that some individuals do not see anything unethical about it, even though it is a criminal offense. Would allowing insider trading, even if it were ethical, hinder the operation of the stock market in raising capital for new and existing companies? Explain. You must use two or more scholarly sources in your essay to support your responses.

Additional Requirements Length: Your essay should be 3–5 typed, double-spaced pages, including a title page and references. Written communication: Written communication should be free of errors that detract from the overall message. Style and formatting: Use current APA style to format your essay and cite your references. You must use at least two references in your essay. Font and font size: Times New Roman, 12 point.
Answered Same Day May 18, 2020

Solution

Abr Writing answered on May 20 2020
149 Votes
Financial planning is one of the most important functions of the finance department former financial planning majorly involves three types of decisions. The first type of decisions are the investment decisions where the Finance insider trading by definition department performs the capital budgeting analysis in order to select the investment which will be profitable in the future. The second type of the financial planning decisions are the capital structure decisions there the capital structure of the company is decided in order to minimize the weighted average cost of capital for the firm first of the third financial decisions are the dividend decision in which a decision is Taken 2 distribute the dividend or to spend the generated profit for the capital expenditure. Manne, H. G. (1966). 
It is important for us to note that the major aim of all the financial planning decision is to maximize the shareholder's value.
Apart from this financial decision another important task of the financial planning department in the corporation is to comply with all the laws of the regulator. Manne, H. G. (1966). 
Securities exchange council in the United States has issued certain guidelines in order to prevent the insider trading in the organization.
Insider trading by definition is the use of material nonpublic information in order to execute the trade-off security and earn the profit in an ethical manner. Manne, H. G. (1966). 
Insider trading is banned by the law because if the insider trading is allowed then the key...
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