When a stakeholder uses confidential information to gain from the sale or purchase of a stock,what ethical violation are they engaging in?
A) Whistle-blowing
B) Insider training
C) Social accommodation
D) Collusions
E) Gouging

Question

Quizplus · Accepted Answer

The stakeholder is engaging in insider trading, which involves using confidential or non-public information to make stock transactions for personal gain. This is a violation of ethical principles as it gives the shareholder an unfair advantage and goes against the principles of transparency and fairness in the stock market. Whistle-blowing refers to exposing wrongdoings or unethical behavior, so this choice is not relevant in this scenario. Social accommodation, collusions, and gouging are also irrelevant in the context of this question.

When a Stakeholder Uses Confidential Information to Gain from the Sale