YOUCAT Lesson 432
YOUCAT the catechism for Catholic youth
432 May a Christian
speculate in the stock market or in Internet stocks?
A Christian can speculate in the stock market or in Internet
stocks as long as he does so within the parameters of normal business practices
for prudently investing one’s own or someone else’s money and does not thereby
break any other commandments.
Crowd gathering on Wall
Street after the Wall Street Crash of 1929. ….. 432
Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) by individuals with access to nonpublic
information about the company. In various countries, trading based on insider
information is illegal. This is because it is seen as unfair to other investors
who do not have access to the information as the investor with insider
information could potentially make far larger profits [or avoid losses] that a
typical investor could not make [or could not avoid losing].--Wikipedia
Speculating in stocks becomes immoral when dishonest means
are used (for instance, insider information); when the transaction puts one’s
own or another’s life savings at risk instead of insuring an income; when such
speculation becomes an addiction, as with games of chance.
“His money owns him instead of
him owning his money.” St. Cyprian of
Carthage (200-258, Church Father)
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