Article by John Maxfield
In the news, the company CEO bought shares with an average price of $34.27 using the 75% (17 million dollars) of 2011 compensation funds, a strategically approach to attract more investors. As result, there would be lots of investors putting their money in J.P. Morgan and this will decrease the loss incur for the past 2 months. The reporter, John Maxfield said that insiders’ purchases of stock would be a powerful tool for the JP Morgan to somehow compensate the damages of the London Scandal.
Even though Dimon's money would put into a great risk, he still the bought stock for the sake of the company. If this would become successful overtime, J.P. Morgan specially its CEO would be able to gain large outputs.Furthermore, there would be lots of investments continuously coming in and as a result, technological developments and innovations in its extended organizations would be possible.
Nepomuceno, Gian Josel