Ethics in Financial Markets Essay Example | Topics and Well Written Essays - 3250 words

Ethics in Financial Markets - Essay ExampleFutures have a tendency to goad traders to borrow money so as to purchase the commodity devising the deal to go sour should the price of the commodity dip, hence has a major impact on the ancestrys and the overall parsimony as a whole. Another form of the financial market is the Hedge fund. Hedge funds have over the years become popular repayable 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 irritability of the stock market and in extension the US economy. Hedge funds though are being blamed for the 2009 ceding back. 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 vox populi that encompasses the norms of a given community. Ethics are a personal set of values used by an individual, a group or a job 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 light 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 pay or wrong etc. Capitalism has been accused to be Darwinian in nature due to the market volatility that is brought by competition and the vivid 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. BODYFinancial markets ride on the premise of fire market where the market is left to regulate and corr ect itself based on the principle of demand and supply enhanced through competition. The cost of the goods and services overconfident 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 take 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 unendingly 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 colored correct the markets.This counters the notion of