Business Ethics custom essays

Insider trading is considered as the variation of an ethical dilemma, because this question has many different approaches in its solving and it is necessary to choose one necessary approach discussing a questionable situation. The main question of the paper is: Why is the use of Insider information in stock market transactions unfair or immoral? I think it is necessary to explain main reasons why it is so and how it will influence on participants of this process.
First of all we should mention that according to Hosmer (1996) we see that “the Oxford dictionary defines stock market insider trading as the illegal buying or selling of securities on the basis of information that is unavailable to the public.” Why is it unfair or immoral? The answer is rather simple, because it does not allow to all members of the process to compete with participants of the process on fair base where all people possess the same information and have equal possibilities to make their choice. Summarizing the essence of the problem I could say that there are two main arguments that promote the effect of insider trading as being harmful and are against insider trading at all. The first argument shows us the fact that information used in the case of insider trading belongs to the corporation and it is stolen, and the second argument proved that using such advantages is really unfair, because the information was stolen and belongs to it owner. Fair stock transactions need the same information base and only such equal knowledge allow people to be competitive with each other in just way.
Thus, we could conclude that unfair and immoral stock trading will have a place when it will be used insider information that prohibit to all parties to act legally and in compliance to the moral standards of society.

References
Hosmer, L. (1996). The ethics of management. (3rd ed.). Irwin/McGraw-Hill.
Stevens, E. (1979). Business ethics. New York, NY. Paulist Press.