The recent economic crisis further underscores the importance of ethics, which is why finance professionals will turn to this authoritative text. It provides them with an applied and practical understanding. Critical thinking questions offer more thought provoking exercises to get them to learn the material. Related cases in the chapters help spark more thoughtful analysis of the issues that are raised. Numerous projects show how to apply investment theory and analysis as well as integrate ethical considerations. Appendices are also included in relevant chapters that review basics in investments and accounting. This material will help finance professionals examine the ethical practices of the companies and organisations they recommend.
Preface
About The Author
Chapter 1 Introduction: The Case For Investment Ethics 2
Learning Objectives 2
Chapter Outline 2
Introduction: The Investment Industry a Legacy Of Scandals And A Need For Ethics 3
A Brief Overview Of The Investment Industry 6
Securities Laws And Regulations 9
The Securities And Exchange Commission 9
Sarbanes-Oxley Act 10
Investment Ethics Are Easier Said Than Done 11
Investments Are Complicated 12
Investments Are About Information 13
Investments Are About Resources 14
Ethics Basics 14
Four Fundamental Principles Of Investment Ethics 15
Ethical Understanding 15
Ethical Use Of Information 16
Responsible Investing 17
Trust And Fairness 17
Costs And Benefits Of Being Unethical 18
Conclusion: Developing An Ethical Consciousness 20
Terms 21
Review Questions 21
Critical Thinking Questions 22
Applied Student Project: Self-Reflection On Ethics 22
References And Suggested Reading 22
Appendix: Financial Market Regulatory Agencies 23
Chapter 2 Fiduciary Duty Of Investment Professionals: The Ethical Treatment Of The Client 26