Show of HandsShow of Hands

JustBob July 11th, 2013 1:11am

Ok, You're a CFO for a company. Your mother has her entire life savings in your company stocks ($1.7 mil) You know that the company is bankrupt and in 2 days the stock is worthless. Do you tell her? (insider trading, and she will know you knew)

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brinrawson Knoxville and DC
07/13/13 5:22 pm

If I was a CFO, I would've convinced my mom to let me control her money and not to this. But for now, tell her to sell some of it.

MJSeals J.D.
07/11/13 8:25 pm

It would be a conflict of interest legally she wouldn't be allowed to own that stock

comppete Las Vegas
07/10/13 10:55 pm

I chose no. She should have known better if she amassed that much money in the first place. Unfortunately, my mother would be homeless if she wasn't living with us.

JustBob Your anger fascinates me
07/10/13 11:30 pm

Lawsuit from a freak accident at the zoo, you don't want to know what the llamas did to her [shudder]

kateXcore Dark side of the moon
07/10/13 9:23 pm

Her life's savings? I'd tell her. Some money because she's a billionaire? She can take the hit.

TreeHugs Oregon
07/10/13 8:13 pm

If I don't tell her she's coming to live with me!

Jungle in the dog house
07/10/13 7:09 pm

I'd tell her, but have her only dump about 3/4 of her stock to buy some other stock immediately so the transaction looks innocent. Take the hit on the other 1/4.

Jungle in the dog house
07/10/13 8:06 pm

Heck yeah, I don't wanna go to jail.

sarah1911 Poolesville MD
07/12/13 8:34 pm

Partial dump is the way to go but as someone else said, diversifying in the first place is the smartest route or making sure there is more than enough to survive still in a bank account before investing 1¢ in anything.

Jungle in the dog house
07/12/13 8:46 pm

True sarah, but that isn't an option in the question.

GetEduc8d learning more everyday
07/10/13 6:50 pm

I would have told her sooner that the company was in trouble. This sort of thing usually doesn't happen overnight.

GetEduc8d learning more everyday
07/10/13 7:16 pm

Originally I chose not to because both of us could be in serious trouble. But then I realized that's only if she acts on that information. If I knew she wouldn't act on it then I'd tell her out of consideration.

JustBob Your anger fascinates me
07/10/13 8:02 pm

Every once in a blue moon companies take a nose dive, lets say this was one of those times. Where execs are buying collars for years, and pull the rug with nothing left for the little guy, some have only days to witness their dreams flush.

GetEduc8d learning more everyday
07/10/13 8:31 pm

I'm sorry. I hope this isn't a real scenario for you.

shellybaxter1234 Peaceful Place
07/10/13 6:48 pm

No - but I would never have allowed my mother to put her life savings my company in the first place - for just this reason

Rob Be Safe Be Smart
07/10/13 6:28 pm

No, I wouldn't send her to prison on top of it. I would have told her to diversify, before this was an issue.

Rob Be Safe Be Smart
07/10/13 8:16 pm

When I found out she had all her eggs in one basket, is what I meant.

07/10/13 6:19 pm

And you will go to prison. Insider trading is a serious crime. The SEC will always investigate trading leading up to news like this one.

fixitlater My Life
07/10/13 6:23 pm

It's not worth jail time.