High Frequency Trading Should Be Eliminated From The Financial Markets

This book brought out the failures of the Securities and Exchange Commission (SEC) in one of the biggest Ponzi schemes in America’s history, as orchestrated by Bernie Madoff. Harry Markopolos caught up with Madoff’s Ponzi scheme earlier on in his career and saw all the red flags. There was no explanation of the continuous one percent yield in over forty five stocks that Madoff dealt with. Madoff took advantage of the laxity by the SEC officials in failing to follow up complains with an investigation, and the trust

Looking back it’s easy to see the mistakes made by the investors of Bernard Madoff, how he got the rich and famous to foolishly invest their money with very little or no due diligence. He made the return of 10 to 12 percent annually look so good that investors begged to be included. Who wanted want to be a part of the impenetrable financial products or the better than average returns offered by Mr. Madoff. Sadly, if investors had

Bernard Madoff or “Bernie” is considered to be one of the greatest minds to ever work on wall street. With his warm personality and his humble beginnings he made a name for himself in the stock market eventually starting his own securities investment firm under the title of “Bernard L. Madoff Investment Securities LLC”. As it became apparent in early December of 2008 Bernard Madoff had been running the single greatest ponzi scheme ever recorded. Through this thousands of “people, charities, management firms and, banks” (Madoff's Victims). Even though many people viewed him as a great man, it is not possible to look past the fraud that he committed.

We chose Bernard Madoff’s case because we thought that we could relate his case to many unethical behaviors. The analysis can be made on decision making and lack of ethical training which we think is an important topic to focus on this course.

The financial crisis of 2007 and 2009 was the worst since the great depression. It was not a single event but a series of crises whose seeds had been planted in yet another recession of 2001 and the era of the internet bubble years earlier (Bodie, Kane, & Marcus, 2011). One of the reasons for the crisis was the rise in subprime lending. Subprime loans were offered to individuals who did not qualify for prime rate loans and carried a higher rate of interest than prime loans (Gilbert, 2011). Another reason behind the subprime mortgage crisis is argued to have been due to the lack of ethics and poor policies such as the Goldman rule which encouraged pursuit of profitable opportunities irrespective of the effects on others (Watkins, 2011). In this paper, I will briefly define financial markets, outline types of financial markets and orders and trading mechanisms in

The stock market is the market where shares of publicly owned companies are issued through exchanges or over-the-counter markets. Some individuals, such as R. Foster Winans, will attempt to cheat the stock market and make profits illegally through insider trading. Insider trading is an illegal activity where people will trade stocks based on confidential information. R. Foster Winans was charged with insider trading because of his knowledge of what would appear in the Wall Street Journal’s, “Heard on the Street Column.” R. Foster Winans got the punishment he deserved for insider trading on the stock market.

Since 1869, the investment banking firm Goldman Sachs has been working to satisfy their customer’s financial needs. In 2008 the firm played a large role in causing the devastating market crash that negatively affected millions of families around the world. At the heart of the cause of the depression, Goldman Sachs took certain steps to make sure they profited, but unfortunately it was at the expense of the market and the public. Just before the market crash, the company blatantly acted in a manner inconsistent to their code of ethics as well as the standards governing their industry.

Generally, the society believes that a degree in Economics is critical to opportunities such as investment banking. Nonetheless, acquiring employment in a company like Salomon Brothers changes an individual’s perspective. An individual learns that trading is more inclined to exceptional analytical skills rather than formal training in economics. I believe that Liar’s Poker is a perfect illustration of the trading world. It shows that the sector involves taking risks without regrets; this means that a trader should neither moan nor cry in the face of loss. In the contemporary society, the Liar’s Poker game encourages individuals to take responsibility for their

Abstract This paper explores the case study of Bernard Madoff and the largest financial scam in history. Madoff was able to defraud thousands of people through his investing firm. By exploring his background, business tactics, and the aftermath of the scam it is evident how important having an ethical foundation is. Everyone looking to enter the world of business should understand this financial scam.

According to Anne Federwisch, ethical issues in the financial services industry affect everyone, because even if you don’t work in the field, you are a consumer of the service. She further stated that the public seems to believe that the financial services sector is more unethical than any other areas of business. She stated that James A. Mitchell believes that the misperception persists for several reasons, mainly because the financial industry is so large, and includes banks, securities firms, insurance companies, mutual fund organizations, investment banks, pension funds, and mortgage lenders

For this assignment, use the Internet to research high-risk investment brokerage firms that have been indicted or convicted of ethical violations to provide insight and understanding of this market segment.

In The Wolf of Wall Street Jordan Belfort tells the tale of his rise and fall of his stockbroking career at his firm, Stratton Oakmont. He talks of all-night parties, drug benders, and women everywhere he went. He also speaks of the millions of dollars he made through “pump and dump” schemes in which he would defraud investors and the high-pressure sales tactics used by his team. In The Wolf of Wall Street Jordan Belfort argues greed and the unabated pursuit and acquisition of money leads to vice and excess, which holds true, because human nature leads people to harm others in pursuit of the almighty dollar.

In the year 1960, with money he earned installing sprinkler systems and as a lifeguard on the beaches of Long Island, Bernard Madoff founded “Bernard L. Madoff Investment Securities,” a “trading power” house that would become one of the largest independent trading operations in the securities industry (Washington, 2012). In the year 2000 his company ranked among the top trading and securities firms in the nation. By age 70, his name had become legendary; he was considered to be one of the most “influential spokesmen” on Wall Street. But on December 11, 2008, Bernard Madoff was arrested and charged “in a 20 year Ponzi scheme, which would come to be known as “the most infamous fraud in Wall Street history (Leonard, 2008;

The first reason for the perception that the financial sector may be more unethical is because of all the financial scandals the public has heard of since the late 1990’s. The watershed event that brought the ethics of finance to prominence at the beginning of the twenty-first century was the collapse of Enron Corporation and its accounting firm Arthur Andersen. The many financial scandals relayed by the media brought into focus the necessity of changes in the corporate finances; however, it also brought the perception of an unethical financial sector. The financial sector is big and extremely profitable; Human nature does not trust financial advisors who work with large amount of money and perceive them as greedy and selfish.

In accordance with the focus on ethical and legal behaviours, this policy outlines procedures for dealing in the securities of Kerry Group plc (Kerry) in addition to those imposed by law. Kerry’s respected position as an ethical global company is reflected, in part, as confidence from stakeholders that the securities of the public company are traded fairly using information that is transparent and equally available to all investors. This policy also defines and prohibits use of “inside information.”