ITM 102 Study Guide - Final Guide: Credit Default Swap, John Lanchester, Islamic Banking And Finance

• School: Ryerson University
• Department: Information Technology Management
• Course: ITM 102
• Professor: Vikraman Baskaran

Document Summary

Fe, chapter 1 introduction paragraphs 2 and 3, (pages 3-4), and then the rest of the chapter except the section on finance theory. Finance: the generation, allocation, exchange, and management of monetary resources. Finance ethics divided into 4 parts: financial theory (don"t have to read this part, financial markets, financial services, financial management. Ethics is a pervasive subject in finance, without being recognized as such. Fairness can be analyzed by identifying instances of unfairness. Unfair trading practices (manipulation/fraud), unfair conditions (unlevel playing field), unfair contracts (one party has taken morally impersmissible advantage of another) Thus a prospectus may be required for issuance of a security, thereby correcting an information asymmetry, because investors are judged to have the right to make an informed decision. Fairness may be defined either substansively (when a security is accurately priced) or procedurally (when a security is sold with full disclosure so that the buyer can assess its value)