This website uses cookies to ensure you have the best experience. Learn more

The Integrity Of Capital Markets Essay

1328 words - 5 pages

Capital market is constituted of both primary and secondary markets all of which provide long-term investment opportunities. They are markets for long term funds with maturity period of more than one year. Examples of Financial instruments which are used in capital markets are debentures, terms, loans, bonds, warrants, preference shares and ordinary shares among others. These markets constitute of bond market and stock market in which debts and equity securities are traded respectively. Subsequently, capital market serves as a way of allocating the available capital to the most efficient users. Being an investment arena, capital markets usually are in constant control of immense amount of money which is usually contributed by investors. On the side of investors, they offer their capital contributions to these markets with an overall aim of obtaining the maximum benefits or rewards for their financial contribution within the minimum period possible (Brown, 2005).

In the last five decades, capital markets have attracted a significant number of interested investors. This has been associated with recommendable rewards or compensations which have been exhibited by already in investors. Nevertheless, the existing loopholes in the governing and supervisory rules have exposed investors to a number of risks associated with these investments. According to research surveys which have been carried out in the United States of America, approximately forty percent of American citizens have been shying away from investing in capital market due to previous cases of inappropriate exploitation of investors (Tichy, & McGill, 2003).

Capital market should adhere to equal and even distribution of market information to all market players. Through this, investors can amply make informed decisions on their use of capital. This is through adoption of appropriate communication channel capable of reaching the maximum attainable number of interested parties. For example through use of print media and radio, a large number can be accessed.

Unethical business practices have been dominating the capital market environment thus leading to subsequent frustration of investors. For instance, delivery and channeling of sensitive market oriented information on biased bases has led to unexpected fluctuation of various market share prices in which shareholders expect dividend from. For example, cases have been reported where top management teams in a collapsing organization leak some such sensitive information to a small group of shareholder. As a consequence, the informed shareholders clear their shares through sale from the involved organization through adoption of a luring technique. This leaves the future investors at a state of dilemma accompanied with frustration and loss bearing the opportunities foregone (O'Brien, 2007).

Capital markets should uphold their integrity by acting independently through formulation of strategies an making of decision...

Find Another Essay On The Integrity of Capital Markets

The Integrity of the New Testament

999 words - 4 pages The integrity of the New Testament is an area of research that is often sought out and questioned then dropped and left without further studying due to its ability to arouse deep spiritual questions concerning the integrity of ones faith. As we venture into the world of Biblical Criticism to seek out the legitimacy of The Holy Bible, we first must conceive a solid background and understanding of the topic. When Studying the integrity, thee

Thoughts on the defintion of integrity

570 words - 2 pages The definition of integrity according to Webster's Dictionary is, 'a rigid adherence to a code of behavior.' There are though many ways to look at a persons integrity. A person with integrity possesses many qualities. Three of these qualities are honesty, the ability to follow a moral code, and loyalty to yourself and your beliefs.In The Crucible, a prime example of a person with integrity is Elizabeth Proctor. Elizabeth shows her personal

The Integrity and Honesty of the Bagrut Exams in Israel

3318 words - 13 pages Integrity can be defined as "an uncompromising adherence to a code of moral, artistic or other values, utter sincerity, honesty and candor, avoidance of deception, expediency, artificiality or shallowness of any kind" (The Penguin Concise English Dictionary). In simpler words this means to maintain high standards and follow the rules, even when no one is watching. Integrity is very important in our everyday life if we wish to be good people

The Levels of Academics Integrity: Plagiarism and Cheating

1145 words - 5 pages Integrity, as defined by the Merriam-Webster Dictionary is “the quality of being honest and fair, and the state of being complete or whole” (Merriam-Webster). At Rutgers, this quality is expected of each and every student in regards to their academics. All students must be honest with their studies, and in turn, honest with themselves as well as their professors and piers. Lack of academic integrity will always result in some form of

Themes of Pride and Integrity in The Crucible

769 words - 3 pages ripped up the papers. This shows a great deal of pride as well, being that he would not confess because of the way society would look at him thinking that he was associated with the Devil. Integrity plays a tremendous part in this literary masterpiece to counter the darkness and evilness in the plot. Though this could easily be considered pride there is a difference. Pride can have an ulterior motive or a dark side. Whereas, integrity is just

Threats to the Integrity of South Africa’s Democracy

2338 words - 10 pages (especially political parties) for the major positions of government; a highly inclusive level of political participation in the selection of leaders and policies, at least through regular and fair elections,…and a level of civil and political liberties – freedom of expression, freedom of press, freedom to form a join organizations – sufficient to ensure the integrity of political competition and participation” (Diamond, Lipset, Linz, 1987, p. 5

Changes Due to English Evolution Affect Integrity of the Bible

1707 words - 7 pages Bible in 1611 (Halkin 55). No one seriously challenged The King James Version for the next 300 years, but evolving changes in the English language during the past few decades have caused Biblical scholars to consider and publish new translations. Bookstores now sell dozens of different Bibles, and this has set off an ongoing debate of whether or not the new translations have maintained their integrity. Causing perhaps the biggest stir of all

The Price Mechanism: Characteristics of Different Markets

1375 words - 6 pages Characteristics of Different Markets A market is a place or process that brings buyers and sellers together to agree on a price that leads to an exchange of goods or services. There are different types of markets that are defined and categorised based on various factors, which develop market structure: “The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among

The Practice of Capital Punishment

1217 words - 5 pages Abba Lawal Gummi Philosophy 150 16th April 2014 Capital Punishment When court declares capital punishment to a criminal, he or she is put to death by the State for his or her crime. The practice is not uniform across the states in the US. Some of the states do not allow capital punishment while others have the law permitting capital punishment; however, execution procedures may differ. As of May 2013, the

The Concept of Social Capital

1852 words - 7 pages The concept of social capital has been used to represent the extent of social cohesion that is found in communities and it entails the processes between individuals or groups, which create networks, social trust and customs, and necessitate co-operation and co-ordination for mutual gain. Social capital is a significant determinant of health in older people and has been the focus on the ageing population in policymaking. Healthy ageing strategies

The Benefits of Capital Punishment

1089 words - 4 pages The Benefits of Capital Punishment Justice is about enforcing consequences for one’s own actions to endorse personal responsibility and the notion of capital punishment does just that. Capital punishment is an effective and efficient method of deterring would be criminals and preventing criminals to commit more crimes. It is by far the oldest form of punishment in the world and remains in effect in many nations. Through discussing

Similar Essays

The Capital Markets Process Of Securitisation

3569 words - 14 pages Table of ContentsExecutive summary2Letter of transmittal3Development and growth of securitisation 5Securitisation Structure7Securitisation and the Capital Market9Securitisation and the Capital Market11Future Direction and Growth of Securitisation in the Capital Markets13Appendix15Bibliography16References 18Executive SummaryThis report outlines the introduction and development of securitisation, looking at its origins in the American markets and

The Importance Of Integrity Essay

910 words - 4 pages I The state of being complete or undivided, purity. Integrity is a powerful and uncommon trait according to today’s standards. One may be defined and known by his or her integrity. “A man is rich or poor according to what he is, not according to what he has” Henry Ward Beecher. In the real world today, certain levels of integrity are expected in different places. For example, where we find the influence of evil, we find a lack of integrity

The Importance Of Integrity Essay

1422 words - 6 pages Individual integrity is often skimmed over when it comes to the metacognition we should use from day to day. Metacognition is referred to as, thinking about thinking, or knowing about knowing which in turn helps us learn. A majority of society holds a belief, tradition, even a fear; as it may be so, of one of the most important parts of evolution—change. When thinking about who we are, why we are here, and what we can do about

The History Of Markets Essay

1368 words - 6 pages which have not been studied, and existed since 100 years and is a multibillion dollar business Albert (1998). The Flea Market provides opportunities to different vendors so that they can start their business without any large capital investment, and sell their products, items and services to general public. In America it have been observed that more than 4500 flea markets consisted of basic necessity food items to antique items, open air market for