FINS1612 Lecture Notes - Lecture 5: Loss Aversion, Technical Analysis, Berkshire Hathaway
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Ethics & equity markets iii (chapters 7) Ethics: what is ethics, ethics a set of guiding moral principles or values, ethical behaviour refers to behaviour that conforms to those values, both terms are often used to imply (cid:494)good(cid:495) ethics and (cid:494)good(cid:495) behaviour. E. g during gfc, no confidence no one willing to buy or sell. Ethical standards are particularly apparent in situation where vague or ambiguous legal rules leave room for unethical discretion. E. g conflict of interest put client(cid:495)s interest above yours. Trust is deteriorating: 48% said that they do not trust financial services investors to do what is right, only 15% has great deal of trust in investment management industry. What attributes investors value most: 35% said (cid:494)acting in best interest of client(cid:495, (cid:883)7% (cid:494)ability to achieve high returns(cid:495) and (cid:494)commitment to ethical conduct(cid:495, only 7% (cid:494)amount/structure of fees(cid:495) Investors have moved beyond just good performance more interested in (cid:494)trustworthy behaviour(cid:495)
