Ethical Decision-Making and Capital Market Integrity

You are a portfolio manager at a mid-sized investment firm. One day, you overhear a conversation between two colleagues discussing the potential impact of a major economic report that is set to be released shortly. They mention that this information is likely to lead to significant movement in stock prices, particularly for a certain sector in which your firm has a significant investment. As you evaluate your portfolio, you recognize that your firm can potentially benefit from this advance knowledge.

In your essay, discuss the ethical implications of acting upon this information before it is publicly available. Consider the importance of integrity in capital markets and how your actions may impact your firm and investors.