Accounting homework question. Does anyone think they could help? It's an ethics case and I don't really see anything wrong with the situation although I should. Basically someone's starting a high-risk gold-mining venture in Canada. They want to request authorization for 90,000,000 shares of common stock to be sold to the general public and have decided to establish par of $.10 per share in order to appeal to a wide variety of potential investors because they feel investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a "bargain" price. Does anyone see how this could be unethical?

Accounting homework question. Does anyone think they could help?
	It's an ethics case and I don't really see anything wrong with the situation although I should. Basically someone's starting a high-risk gold-mining venture in Canada. They want to request authorization for 90,000,000 shares of common stock to be sold to the general public and have decided to establish par of $.10 per share in order to appeal to a wide variety of potential investors because they feel investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a "bargain" price. Does anyone see how this could be unethical?
In: Help.School Work Asked by: betweendreams27 Feb 04, 2010 - 7 Months Ago. Viewed 261 times

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There is nothing unethical at all about pricing a share offering. The pricing decision is a financial and marketing decision... not an ethical decision. Just like any product, a low priced investment may be perceived as low quality, versus the high-priced Google or Berkshire shares perceived as high value.
Answered by: JoeSlo - 7 Months Ago.
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Accounting homework question. Does anyone think they could help? It's an ethics case and I don't really see anything wrong with the situation although I should. Basically someone's starting a high-risk gold-mining venture in Canada. They want to request authorization for 90,000,000 shares of common stock to be sold to the general public and have decided to establish par of $.10 per share in order to appeal to a wide variety of potential investors because they feel investors would be more willing to invest in the company if they received a large quantity of shares for what might appear to be a "bargain" price. Does anyone see how this could be unethical? - HelpGlobe.Help.School Work

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Accounting homework question. Does anyone think they could help?

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