Portfolio Regulations & Ethics

“Can an action be legal but still raise an ethical concern?” Students study the legal requirements that establish minimum standards of conduct and understand that professional ethical standards may require additional care, fairness, disclosure, diligence, and judgment.

Students decide which business ideas from the children’s story “Shark Scam: Money Tales” sound like a good investment and can determine which idea they would consider investing in.   Although this is a “children’s book”, high schoolers will get a kick out of the story and a better understanding of Ponzi schemes.  Watch the webinar for teaching tips using this resource.

Students are introduced to the ethical and professional responsibilities of individuals who provide investment advice or make investment decisions for others.  The lesson emphasizes that laws and regulations establish required conduct, while professional ethical standards can impose additional expectations concerning judgment, diligence, fairness, and responsibility.

Use the Federal Reserve Education article,  Beyond the Hype: An Introduction to Crypto Assets to introduce crypto assets as a modern investment alternative. Students should understand what crypto assets are, the basic role of blockchain and decentralized networks, and major types of crypto assets. Emphasize that crypto assets may be held as financial investments but can involve substantial price volatility and risk. The article also provides useful context by comparing the size of crypto markets with traditional stock and bond markets.