Question

Ben is a manager at Unique Accessories Inc. and is friends with the company's CEO. This privilege gives Ben the information that Unique Accessories is in the midst of talks to take over a leading rival. Ben buys stocks of Unique Accessories with the expectation that its stocks will appreciate. But the deal falls through, and the stocks of Unique Accessories depreciate in the following months. Are Ben's actions unethical? Why or why not?

Answer 1

Yes, Ben's actions are unethical because he is CEO´s friend and through this friendship he can have privileged stock market information that other persons do not have.

Step-by-step explanation: