This action might not be possible to undo. Are you sure you want to continue?
All are interrelated and business cannot survive in the absence of any one factor. . Finance is of utmost importance as nothing could be done if adequate finance is not available. Success of many business depends on combination of many factors such as finance. production and marketing.
Insider trading Stakeholder interest versus stockholder interest Investment management Fraudulent financial dealings Cheating customers of their trading profits Unauthorized accounting transactions Frauds and manipulation in markets Unequal bargaining power Unethical practices during takeover and mergers .
It refers to trading in the securities of a company to take advantage of material ´insideµ information about the company that is not available to the public. Insider Trading. . Such a trade is motivated by the possibility of generating extraordinary gain with the help of non public information (information not yet made public).
Stakeholders versus Shareholders interest. . The objectives of the shareholders and other stakeholders may differ and conflict with each other. The financial manager has a difficult task of reconciling and balancing these conflicting objectives. The modern business is characterized by limited liability and separation between management and ownership.the only aim of the business is to maximize profits.
Some highlight their social responsibility measures which.In order to attract public investment sometimes the companies hike their share prices to make the fresh issue more attractive. . Investment Management. infact are only bogus claims.Attractive future plans and high returns are shown to impress the investors.
.Sometimes the brokers and agents use confusing lamguage which hides the risk element in financial dealings. Cheating customers of their trading profitssometimes the brokers resort to excessive trading on account of customerswith the in tention of earning more commision rather then giving benefit to the client.deception is one of the ways of deceiving the clients in financial dealings . Fradulent Financial dealings.
Unauthorized accounting transactions. Frauds and manipulations in marketsManipulation in buying and selling of securities in order to create a misleading impresssion about the prices and to induce them to buy or sell the securities. or otherwise engaged in a fraud.Some of the ethical issues surrounding accounting practices are under reporting incomes. illegally evading income tax . . falsifying documents .
Unequal bargaining power.It is an unethical practice to have competition in the market between parties with equal information. All parties should have equal bargaining power .Therefore . . anyone possessing unequal information will be unfair if that information has been acquired illegally and violates some obligation to others.
.In order to finance takeovers . many firms take on huge internal debts . Unethical practices during takeovers and mergers.paid off only as long as the company is doing well but left as a market loss when the company is threatened with higher cost.