It is important for an average investor to look into the matter by himself than to wait for the statements of analysts and press. Analysts and press people will take time by which the stock already starts depreciating or the investor has a chance of loosing opportunity to enter into a good stock.
It does not mean that one need to do all the work the analysts do to make a judgment about the scandal and its impact on the company. If the scandal is because of person having a high position in the company, it will impact the most. Whereas an average employee might be involved for the sake of small gains, only to slightly or not impact the whole company.
The company?s future may be affected by a scandal. But if the impact can be large then it is better to leave the stock than to hold. The bigger things will always be clear before they can hit you. As an investor you have an advantage to take the avoid losses before the company does. If it is clear that the scandal is small and it does not affect in the long term then it is better to grab the opportunity to enter into the stock as some investors would have already started selling the stock. If the company has insurance it can help the investors.
