The television network CNBC and other television networks have been working to develop policies for their business correspondents and guests on their business shows because of conduct known as pump-and-dump, the practice of a Wall Street professional or network correspondent appearing on television to tout a particular stock as being a good buy. Often, unbeknown to the viewing audience, the guest or correspondent promoting the stock has a large holding in it and, after the television show runs and the stock price creeps up, sells his or her interest at a higher price than would have been possible before the show on which the person raved about the stock appeared. What category of ethical issues exists here? If you were a network executive, what would you do to remedy the problem? Should the government regulate such practices?
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