Wall Street-Financial Markets and Management in Corporations: Examined :: Wall Street Film Movies Films Papers Business

mole Street Financial Markets and Management in Corporations The film Wall Street is a movie that portrays the corruptness that dissolve exist on Wall Street. Bud Fox is arduous to establish a diagnose and a living for himself, and thus he has the endless task of trying to increase the number of clients that he re infixs. In the end he is taken by the prospect of becoming rich, and it would seem that to do this requires illegal actions, such as insider trading. It is preferably amazing how this can, almost overnight, lead to great wealth and power. Bud Fox was making an honest living that is until he at long last is able to establish a relationship with Gordon Gekko-a so-called financial wizard. trance this film deals primarily with the concept of Insider Trading and how it affects the stocks and their values, I would like to present in this paper ideas and concepts that I learned in a forward class that extend beyond just the ideas of insider trading and expand t o a greater extent broadly to discuss the unethical riddles that can occur within a bow window in general (not just on wall street), when in that location is separation of management and ownership. This is important to be aware of in a capitalist society where many people work for other people, and or are in charge of many other people as well. It constantly causes people to question the systems in place and what can be done to eliminate these potential problems and unethical actions. The ultimate test of embodied strategy is whether it creates economic value for shareholders. Yet there are quite a few problems which can arise and interfere with this agenda. The agency problem that arises from the separation of ownership and management in the modern corporation can lead to conflict between the objectives of owners and the objectives of managers. The managers goal should be, and in fact the managers speculate is, to maximize shareholder wealth. Managers work for the sha reholders, since shareholders are essentially partial owners of the corporation that they have purchased stock in. Stockholders invest their money because they hope that the value of their investing will grow. They want to increase their wealth as much as possible. (Hickman 11) Unfortunately, claimants (shareholders) oftentimes have difficulty determining how well management is really doing because of the existence of information asymmetry- in a sense lack of information.