Investment Risk in Stock Market Securities Introduction: Stories of people making fortunes from the securities market have enticed many others into risky investments. Congress created the Securities & Exchange Commission (SEC) to protect investors. Many corporation managers became greedy and made self-serving decisions that created the principle-agent problems. The solutions for these problems lead to more unethical behavior from management. The creative use of financial statements even tricked analysts and brokers.
Sklar, Robert, Film an International History of the Medium. New York, Harry N. Abrams, Inc., 1993 7. Http://us.imdb.com/name?Ford,+John, 03/01/1999 Ford, John. Orig. Sean Aloysius O' Feeney o-'fe-ne .
Inside Job features hard-hitting interviews with some of the country’s most influential economic figures and politicians in hopes to get to the bottom of the greed. Instead of spelling out definitions or putting in celebrity cameos to ensure the audience is paying attention like The Big Short does. In relation to the course, the process of the market economy, the big banks making money and the events leading to the financial crisis, all can be described by capitalism. The term capitalism is defined as “an economic system in which trade, industry, and the means of production are controlled by private owners with the goal of making profits in a market economy” (Langille, 2017). The pros of capitalism are that it creates jobs, wealth, productive and innovation.
In hopes of rebuilding America, the capitalists’ hunger for wealth only widened the gap between the rich and poor. During the 1800’s, business leaders who built their affluence by stealing and bribing public officials to propose laws in their favor were known as “robber barons”. J.P. Morgan, a banker, financed the restructuring of railroads, insurance companies, and banks. In addition, Andrew Carnegie, the steel king, disliked monopolistic trusts. Nonetheless, ruthlessly destroying the businesses and lives of many people merely for personal profit; Carnegie attained a level of dominance and wealth never before seen in American history, but was only able to obtain this through acts that were dishonest and oftentimes, illicit.
The capitalist sits smiling pleased his corporation is making a profit, without thinking of the consequences his firm causes around the world. Money cause corruption at every institution and greed torment man soul. Despite the fact four thousand years ago, money was invented for object or record that generally accepted as payment for goods and services. (“Money Matters”) Before money, people obtain goods by trading other items or services for them. This was difficult, especially for large businesses.
Auditing firms have been overlooking figures and hiding debt from the public for their high paying companies. This is where our corporations have gone astray and started to cheat their investors by deception because of conflicts of interest of... ... middle of paper ... ...rruption In The Auditing Profession." Review of Human Factor Studies. Jun. 2005, Vol.
The Vice President of Merchandising and Operations, Ausaf Umar Siddiqui had set up a fake company that received illegal kickbacks. Siddiqui embezzled $65.6 million to pay off his gambling debts. Embezzlement of money from a company can understate cash and show a false picture to the creditors and investors. This can lead them to make decisions on misrepresented information. Another example of misappropriation of assets was of a hedge-fund manager, Philip A. Falcone who borrowed $113.2 million from investors from a hedge fund company (Harbinger Capital) and he used that money fraudulently to pay off his personal taxes.
Review of movie Wall Street In the big city of New York there always exist those who push the envelope a bit, and stretch the law. One such man played by Michael Douglas makes money buying and selling others' dreams. He is a stock speculator; but one that succeeds based on illegal inside information. As he puts it "I make nothing, I own" Released in 1987, Oliver Stone's Wall Street is a representation of bad morals and poor business ethics in the business world. It also shows the negative effects, bad morals and poor business ethics can have on society.
We state that corruption is allowed because of the grand scheme of world politicians to create alliances which give them ultimate power, where normal rules of integrity and character don’t pertain to them. LITERATURE REVIEW: “Corruption is why we win” a quote taken from an actor in the film syrianna, acknowledges the fact that Americans believe that the laws against corruption is what allows them to cheat. Corporate Americas view on Bribery was that international business couldn’t be completed without it. But the rise of strict laws and acts now enforced by the department of justice, ensured foul play wouldn’t occur. The U.S department of Justice tried tiredly to account for the wrong doings of the arms deal between the UK and Saudi but was somewhat shut out because of the lack of justice brought about in these countries homeland.