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Goldman Sachs On Wall Street

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Goldman Sachs on Wall Street Goldman Sachs was founded in 1869 with a humble purpose of providing loans to small business and creating a market for the loans through commercial paper. However, in the late 1920s the business drifted from its humble roots and took on an investment strategy. As years went by, the company grew bigger and bigger until it was extremely successful. During this time the company made many of decisions that would be considered unethical or “gray”, these decisions may not be considered illegal, however, they are not fair to the businesses clients or employees.
Gray Ares of Goldman’s
While reading the case study, “what was up with Wall Street? The Goldman Standard and Shades of Gray” I came across numerous actions that would be considered gray, meaning they may not necessarily be illegal, but when looking at them from a business perspective they could be considered unethical. The first gray area I came across was when Goldman bought 90% of their shares with their own money to make the business appear more successful, leading the public to buy the remaining shares. They then sold the share they had purchased for more money, allowing them to purchase more companies. Second, the company took part in laddering; laddering is defined as “the promotion of inflated pre- IPO prices for the sake of obtaining a greater allotment of the offering (Laddering, 2016)”. In Goldman Sachs particular case the clients agreed top purchases a numerous amount of the
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