StudentShare solutions
Triangle menu

Ethics in Financial Markets - Essay Example

Not dowloaded yet

Extract of sample
Ethics in Financial Markets

Futures have a tendency to goad traders to borrow money so as to purchase the commodity making the deal to go sour should the price of the commodity dip, hence has a major impact on the  stocks and the overall economy as a whole. Another form of the financial market is the Hedge fund.  Hedge funds have over the years become popular due to the high returns it offers to the high end investor.  Hedge funds do invest heavily in the futures and some analysts have argued that they help check the volatility of the stock market and in extension the US economy. Hedge funds though are being blamed for the 2009 recession. Financial markets therefore do involve the financial institutions that are the banks, insurance companies, stock brokers and other closely related institutions. Ethics is perceived as a set of societal standards of conduct and moral judgment that encompasses the norms of a given community. Ethics are a personal set of values used by an individual, a group or a profession;   so as to guide them in their action and help them fulfill or carry out their obligation. Its subjective rather that objective and its relative to our perception of reality  dependent on circumstances and life  experiences of the individual or group, thus making it a continuously evolving  code of conduct. It addresses issues pertaining to morality, i.e. good and bad; right or wrong etc.  Capitalism has been accused to be Darwinian in nature due to the market volatility that is brought by competition and the natural forces of demand and supply. ...
Its subjective rather that objective and its relative to our perception of reality dependent on circumstances and life experiences of the individual or group, thus making it a continuously evolving code of conduct. It addresses issues pertaining to morality, i.e. good and bad; right or wrong etc.
BODY
Financial markets ride on the premise of free market where the market is left to regulate and correct itself based on the principle of demand and supply enhanced through competition. The cost of the goods and services plus the overall state of the market is determined through the action of consumers and suppliers. Capitalism has been accused to be Darwinian in nature due to the market volatility that is brought by competition and the natural forces of demand and supply. Companies that are fit do survive while those that are unfit collapse especially during a recession. During recession bad debts is wiped out of the market leaving those who remain the task of rebuilding the market making the process to be cyclic and this is how market correction occurs. Competitive markets has made companies to do everything in their power so as to maximize profits by engaging in monopolistic practices, offering minimum wages and commercialization of everything making capitalism to be amoral as it prizes the self above others and the natural checks and balance that capitalist have been advocating for in most cases than not has always not emerged. Capitalism is generally volatile thus fails from time to time and the correction mechanism has proven to be wanting during financial crisis prompting governments to artificial correct the markets.
This counters the notion of ...Show more

Summary

In the paper “Ethics In Financial Markets” the author analyzes the theory of rational maximization that stipulates that one has an inner desire to gain as much as it can for himself as it can get. This theory has always been applied in the financial markets with disastrous effect.

Ethics in Financial Markets essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Ethics in Financial Markets"
with a personal 20% discount.
Grab the best paper

Related Essays

BME0006 Emerging and Alternative Financial Markets
A successful market is that which provides for the needs of the consumers and the citizens in general (Consumer Focus, 2010, p.2). Various regulatory procedures then needs to be instituted that advocates for these public needs. A desired regulatory mechanism has certain valued characteristics.
10 pages (2500 words) Essay
Financial Institutions & Markets - Financial Innovation
can be supposed to be the attributing factors towards the development of financial innovation. Innovations are mainly done to achieve the basic objectives of financial systems like facilitating the required payment instruments, increased savings, reduction in costs, etc.
6 pages (1500 words) Essay
Ethics and decision making in financial institution
Seminal research works of Milton Friedman (1970) has forced the researcher in this essay to look deep on role of ethics and ethical decision making in financial institution or more specifically for banking industry. In the first part of this essay, the researcher will try to define the concept of free competition and business ethics in the light of research works of previous research scholars.
12 pages (3000 words) Essay
Financial Markets
Therefore, any modeling of financial assets is directed towards the reduction of the uncertainties & risks involved with the value of an asset or the pricing agreements that govern the variation of the determinants of financial assets' evaluation. Therefore, any such evaluation is performed so s to strike a perfect balance between the non-risky assets and the non-risky assets.
4 pages (1000 words) Essay
International Financial Markets Essay
This increases the demand of host country's currency and hence the host country's currency appreciates at the expense of the multinational's local currency. When many multinationals carry out FDI, the impact is quite bigger and hits the financial markets harder.
1 pages (250 words) Essay
Financial Markets & Risk
This understanding was signed for creating financial stability in England. It has four guiding principles in mind. Its responsibilities and powers are well
14 pages (3500 words) Essay
Financial markets
In early November 2009, Australian government raised the interest rate for second time to tighten the monetary policy. This is expected
6 pages (1500 words) Essay
INTERNATION FINANCIAL MARKETS
They are of the view that there must be stricter norms for controlling the flow of capital. However, other economic experts like Fischer, (1998) and Summers, (2000) argue that development of
10 pages (2500 words) Essay
Financial Markets
Other organizations of such type are the following ones: a) the Financial Services Agency – in Japan, b) the ‘Autorité des marchés financiers’ – in France, c) the China Securities Regulatory
4 pages (1000 words) Essay
Financial markets
Remarkably, the financial markets facilitate the connection between the well-developed financial institutions and the borrowers who want to invest more than they earn, which suits the needs of the savers and borrows; hence,
3 pages (750 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation