Verified Document

Securities Law And Ethics After Term Paper

" (Whalen, 2003). More conservative critics of analyst conflicts rules believe that they are a step in the right direction, but view them as a work in progress. For example, the Sarbanes-Oxley bill, which mandated many improvements in corporate managers' financial practices, did nothing to reduce the unethical practice by many managers of communicating only with those analysts who cooperate with management's forecasts of the future (Boni and Womack). This and other rules need strengthening.

Wall Street Journal reported in April 2003 that the brokerage firms of the top investment banks are still more likely to give optimistic research recommendations to their own banking clients, calling to question if new disclosure rules reapply protect investor clients (Boni and Womack). With all the hoopla to protect investors, it's important to remember that disclosure of unethical activity is not the same as not engaging in unethical behavior. How many investors actually read and understand the new disclosures is unclear. Ultimately, too much burden is on the individual investor to discover conflicts of interest. Therefore, ongoing enhancements to conflicts of interest rules need to be more to stop unethical conduct rather than to simply require public admission.

Bibliography

60 Minutes - the sheriff of Wall Street (2002, October 6). Retrieved January 11, 2005 from James Hoyer Web site: http://www.jameshoyer.com/news_cbs_merrill_lynch.html

Boni, L. And Womack, K.L., Wall Street research: will new rules change its usefulness? Retrieved January 11, 2005 from The University of New Mexico...

(2003, March 6). Outline of new research analyst conflicts of interest rules. Retrieved January 11, 2005 from Security Industries Association Web site: http://216.239.63.104/search?q=cache:ETmwyiBBHrMJ:www.sia.com/ResearchManagement/pdf/ResearchOutline.pdf+%22NASD+Rule+2711%22& hl=en
Rayburn, K. (2004, Winter). Insecure securities. Impact. Retrieved January 11, 2005 from University of Louisville Web site: http://php.louisville.edu/advancement/pub/impact/winter2004/insecure.php

Report on analyst conflicts of interest (2003, September). Retrieved January 11, 2005 from International Organization Of Securities Commissions Web site: http://www.iosco.org/pubdocs/pdf/IOSCOPD152.pdf

Richards, L. (2002, May 8). Analysts conflicts of interest: taking steps to remove bias. Retrieved January 11, 2005 from U.S. Securities and Exchange Commission Web site: http://www.sec.gov/news/speech/spch559.htm

Securities and Exchange Commission Litigation Release No. 18116 (2003, April 28). Retrieved January 11, 2005 from U.S. Securities and Exchange Commission Web site: http://www.sec.gov/litigation/litreleases/lr18116.htm

Whalen, C. (2003, February 24). Just say no. Barron's Online. Retrieved January 11, 2005 from Web site: http://216.239.57.104/search?q=cache:wK5ohqYxTEwJ:www.rcwhalen.com/pdf/Barrons_Just%2520Say%2520No_022403.pdf+%22research+analysts%22+and+unethical& hl=en

Sources used in this document:
Bibliography

60 Minutes - the sheriff of Wall Street (2002, October 6). Retrieved January 11, 2005 from James Hoyer Web site: http://www.jameshoyer.com/news_cbs_merrill_lynch.html

Boni, L. And Womack, K.L., Wall Street research: will new rules change its usefulness? Retrieved January 11, 2005 from The University of New Mexico Web site: http://66.102.7.104/search?q=cache:Vops0e1attQJ:www.unm.edu/~boni/FAJ_MayJune2003.doc+%22NASD+and+NYSE+rules%22+and+%22conflict+of+interest%22+and+%22not+enough%22& hl=en

Fleischman, D. (2003, March 6). Outline of new research analyst conflicts of interest rules. Retrieved January 11, 2005 from Security Industries Association Web site: http://216.239.63.104/search?q=cache:ETmwyiBBHrMJ:www.sia.com/ResearchManagement/pdf/ResearchOutline.pdf+%22NASD+Rule+2711%22& hl=en

Rayburn, K. (2004, Winter). Insecure securities. Impact. Retrieved January 11, 2005 from University of Louisville Web site: http://php.louisville.edu/advancement/pub/impact/winter2004/insecure.php
Report on analyst conflicts of interest (2003, September). Retrieved January 11, 2005 from International Organization Of Securities Commissions Web site: http://www.iosco.org/pubdocs/pdf/IOSCOPD152.pdf
Richards, L. (2002, May 8). Analysts conflicts of interest: taking steps to remove bias. Retrieved January 11, 2005 from U.S. Securities and Exchange Commission Web site: http://www.sec.gov/news/speech/spch559.htm
Securities and Exchange Commission Litigation Release No. 18116 (2003, April 28). Retrieved January 11, 2005 from U.S. Securities and Exchange Commission Web site: http://www.sec.gov/litigation/litreleases/lr18116.htm
Whalen, C. (2003, February 24). Just say no. Barron's Online. Retrieved January 11, 2005 from Web site: http://216.239.57.104/search?q=cache:wK5ohqYxTEwJ:www.rcwhalen.com/pdf/Barrons_Just%2520Say%2520No_022403.pdf+%22research+analysts%22+and+unethical& hl=en
Cite this Document:
Copy Bibliography Citation

Related Documents

Securities Law
Words: 1313 Length: 4 Document Type: Essay

Corporation Transactions and Misrepresentation of Financial Reports Business law also called commercial law is a branch of civil law that governs business as well as, commercial transactions, and deals with both the private and public law. The branch created to ensure that, they are no exploitation and manipulation of people as well as rules and regulation in order to benefit some members of a business. This means that should one break

Ethics Business Ethics the Foundation
Words: 535 Length: 2 Document Type: Essay

Pharmaceutical drugs are among the most expensive products to produce globally and as a result have a major impact on the profitability of these firms. Without accurate financial reporting of these costs many investors have no idea of whether the companies are doing as well as they report they are. The second most troubling issue that is impacting the community and the pharmaceutical industry is the lack of credibility of

Securities Regulation of Nonprofit Organizations
Words: 12607 Length: 45 Document Type: Dissertation or Thesis complete

Securities Regulation SECURITIES REGULARIZATIONS IN NON-PROFIT ORGANIZATIONS The ensuring of the fact that an organization is working as per regulations and is following the code of conduct, while keeping the interest of the public first, are matters which are becoming more and more complicated with the passage of time. Therefore, it can be said with some emphasis, that today one of the most basic issues of many organizations is the issue of

Law and Ethics
Words: 1477 Length: 4 Document Type: Other

trade libel is fair to business owners. Argue both sides of the issue. From the general public's viewpoint, the definition of trade liable is accurate. This is because the store detained someone they accused of shoplifting. To determine where the stolen item was hiding; they effectively conducted a strip search by revealing private areas. At one point, Cockrell (the plaintiff) had to remove a bandage that was use to cover

Securities Exchange Commission Took Conglomerate
Words: 581 Length: 2 Document Type: Thesis

This could have been interpreted as the company having an orientation more towards money-making than to the development of strong ethics. Leadership, or lack thereof, made a strong contribution to the Tyco failure. The company's leaders set the cultural tone of the firm, but they were also among the primary actors engaged in the fraud. Kozlowski and the other executives were front and center in the fraud, and committed many

Ethical Problems in Business Principle: Ethics May
Words: 1450 Length: 5 Document Type: Research Paper

Ethical Problems in Business PRINCIPLE: Ethics may be termed as the inner guiding moral principles, values and beliefs people use to indicate and identify what is acceptable and appropriate behavior whilst straying away from the opposite (Jones, 2007). However each individual may perceive different behaviors as acceptable and appropriate depending on the individual's own self-interests, attitudes, beliefs and values. To dig further into the aspects of business ethics, it is primarily a notion for

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now