Why is financial education important?

This question sets the grounds for the reason behind the devastating downfall of buyers whom have invested in the “small oil and gas exploration” company, OSE Corporation just to fall deeper into the pits of debt. The company’s stocks were controlled by mainly five “schemers” that induced favorable, but artificial trading prices for their own benefits: to profit off of uneducated investors. This situation shows the lack of “social responsibility” on behalf of the five major schemers towards the investors. Meanwhile, their responsibility to each other to maximize profit has not gone unnoticed, as ismade apparent with over $7-million in profit after manipulated shares.

If all stakeholders are benefiting, the management has correctly executed their job to maximize profit. As a “professional”, it is one’s duty to provide the best educated service and consulting to his client (also a stakeholder). The schemers, in this case, took advantage of the fact that there is vulnerable clientele in the market willing to invest under enough “professional” persuasion. In a sense, the five core investors are not truly educated professionals because of their lack of integrity towards all stakeholders that should be taught through basic business education. Our recent lecture touches on the grey areas between profit and social responsibility; understanding and distinguishing the fine lines along with being able to enable all stakeholders to benefit sets the foundation of business education.

Citation: McFarland, Janet. “Five investors manipulated share prices, BCSC rules” The Globe and Mail 10 Sept. 2014. Web.