Answer the four questions pls. Jessica is an accountant at Mercury Global, a lar

Question

Answer the four questions pls.

Jessica is an accountant at Mercury Global, a large international firm where she works on potential acquisitions of other companies. When Mercury Global is preparing to acquire a company, Jessica is involved in filing the necessary regulatory paperwork with the Securities and Exchange Commission (SEC).

            Jessica has been dating Alex for two years; they are now discussing marriage. Alex works as a salesperson for a golf equipment distributor in the city.

Over the past two years, Jessica has talked generally with Alex about what she’s doing at work. She does not go into great detail, but does occasionally mention company names from work. Jessica has given her phone passcode to Alex so he can answer calls for her or look things up for her when she’s the one driving. Alex has read some of her emails by using the phone passcode. He has also overheard a few phone conversations she has had when a colleague calls her from work with a question.

            Unbeknownst to Jessica, Alex has been sharing information he has gotten from her with his stockbroker friend, Jordan. Alex will call Jordan to give him a “heads up” that Jessica’s company is possibly going to be acquiring another company soon. Jordan will then place an order to buy the stock of the company under consideration to be bought and will later split the profits of the trade with Alex.

            Jessica has not shared any information intentionally, nor has she directly profited from Alex’s stock trades.

1. What major issues, if any, can you identify in the situation as described?

2. Identify anyone that you believe that is affected by Alex and Jordan’s activities. Explain briefly your concerns.

3. What are the consequences to each individual associated with Alex and Jordan’s actions?

4. What are the implications of each named persons actions or inactions regarding the trading activity?

Explanation / Answer

(1). What major issues, if any, can you identify in the situation as described?

In given case there is some major issues like;

Jessica has given her phone passcode to Alex and as a result all wrongdoing took place. Although it is clear that Jessica did not intentionally gave passcord for getting unfair trade profits but after all it happened. So when we think professionally or ethically then it is clear that Jessica did a mistake by giving passcode to Alex because it is a violation of ethical code of her profession.

Due to mistake of Jessica there may be some big problem for potential investors because Alex and his friend Jordan will earn undue profits from buying and selling of the securities of the company.

(2). Identify anyone that you believe that is affected by Alex and Jordan’s activities. Explain briefly your concerns.

Prospective & potential inventors will be badly affected by the Alex and Jordan’ activities because as per rule & regulations it is necessary not to disclosed inside information of the company before real trading activities. If it happens then it will affect future true investors.

Apart from this Jessica will also be affected by the Alex and Jordan’ activities because Jessica did not know real intention of Alex.

(3). What are the consequences to each individual associated with Alex and Jordan’s actions?

Jessica definitely will face consquences of violating ethical code of her profession because it is expected from an employee that he or she should not disclose personal passcode to anyone who is not authorize to use it.

Potential investors will suffer due to unwanted fluctuations in the prices of securities of the company.

Jordan also will also face consequences because Jordan also violated ethical code of his profession. Jordan should have denied Alex not to use such private information for taking undue financial advantage. So Jordan is also responsible for his actions.

(4). What are the implications of each named persons actions or inactions regarding the trading activity?

Jessica although not involve directly in trading activity but due to her one mistake all things went wrong. So Jessica is not directly responsible for undue trading profits but she is responsible for disclosing crucial information about the company hence she paved the path for such unfair trading activity.

Alex is fully responsible for unfair activities because he intentionally used the insiding information of the company for taking profits from trading activities. Hence Alex is responsible for this unfair activity.

Jordan, who is working as a stockbroker thus there is a ethical code of conduct for Jordan not to involve in such unfair activities but Jordan did it due to taking some profits from the trading hence he had violated the code of conduct of his profession hence he is responsibe for his activities.

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