Jordan Belfort founded Stratton Oakmont, a brokerage firm that focused on selling very risky penny stocks selling

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Jordan Belfort founded Stratton Oakmont, a brokerage firm that focused on selling very risky penny stocks selling at very low prices to investors. Belfort encouraged his brokers to use high-pressure tactics to sell the stocks. Belfort paid his brokers handsomely, with commissions reaching 25 percent of the purchase price. As a result, many Stratton Oakmont brokers were able to improve their lives and support their families. Many of the stocks peddled by the brokers were investments in small companies with little chance of becoming profitable. Some of the investors were pressured into buying more stock than they should have purchased, considering their levels of wealth and other security holdings. The investors could have insisted on receiving more information about the stocks before purchasing them. However, the investors’ desires to make a large, quick profit deterred them from taking steps to protect themselves. Assess the ethical behavior of both the brokers and the investors.

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...
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Related Book For  answer-question

Business Law The Ethical Global and E-Commerce Environment

ISBN: 978-1259917110

17th edition

Authors: Arlen Langvardt, A. James Barnes, Jamie Darin Prenkert, Martin A. McCrory

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