FIN 800 Study Guide - Mortgage Broker, Yield Spread Premium, Corporate Finance

• School: Ryerson University
• Department: Finance
• Course: FIN 800
• Professor: Alan Kaplan

Document Summary

Activities facilitated/mediated by financial markets & financial institutions. Finance ethics concern with moral issues & norms that arise in finance theory, financial markets, financial services & financial management. Ethical concerns about fairness, rights, & duties regarding operations. Currencies, commodities, financial instruments (stocks, bonds, futures, options, swaps, derivatives) traded in exchanges. Exchange operate according to established laws, rules, procedures; also private transactions. Ethical requirement of financial markets: be fair: unfair trading practices: manipulation & fraud, unfair conditions: unlevel playing field. Results from: asymmetry in info, bargaining power: unfair contracts: one party taken morally impermissible advantage of another. Prospectus required for issuance to correct asymmetry. Insider trading breach fiduciary duty: substantively = security accurately priced. Fin800 winter 2014: procedurally = sold with full disclosure so buyer assess value. Blue-sky laws require expert evaluation of securities offered for sale. Ensure fairness in markets via govt, industry & self regulation. Hedge funds lightly regulated, capital from wealthy & large institutional investors.