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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Discussion (D5)

Discussion (D5)

Q Based upon your review of the textbook readings, post a 450-word (minimum) synopsis of your understanding of the material. This post should 1) demonstrate understanding of the ethical issues reviewed. Following your synopsis of the chapter material, 2) incorporate a practical application of the material by responding to questions in Case 5.2. In your posting, it is important that you highlight any questions you have about the material. The instructor will review the postings for understanding of the material and respond to questions you may have. The initial discussion post is to be posted no later than Wednesday at 11:59 p.m. Students must complete two response posts by Sunday night at 11:59 p.m. In order to receive full credit for collaboration, please refer to the guidelines related to substantive posts and posting on multiple days (on pages 4-5 of the course syllabus). In case of contract negotiations and conflicting interests between parties to a contract, I feel that it is important to ensure that there is a moderation or effect of the negotiations. In other words, there must be parties to the contract who must ensure that they do not fall prey into the hands of smiling assassins who can make others do whatever they want in the name of negotiation. Conflicting interests can be because there might be a party to a contract who might want to end or terminate the contract just for the sake of obtaining another contract with better prospects with other contractual parties. Therefore, one must be careful from such parties so that one does not lose one’s interests in a contract by mutually agreeing to something which is fair. Case 5.2 1. Is the information withheld from individual investors important in making the decision to buy the stock? 2. Explain the ethical issues involved in Mr. Grimes’ actions.3. Check the price of Facebook stock presently and determine whether the IPO was fairly and accurately priced. Discuss the implications of withholding information from investors.

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According to the example given in this case as well as the logic for investing for an investor, I feel that the information withheld from individual investors should not impact any individual investor’s decision to buy or not to buy a stock at a particular price. This is because it is the sole judgment of the investor to understand and comprehend thoroughly about the entire situation of the market as well as the entire situation of the fluctuations in the prices of the stocks the investor might be interested in buying or knowing about for future investment. Moreover, the information withheld from individual investors is never included in the prospectus which is generally issued by the IPO offering organization (Jennings, 2014).