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

groyne path Financial Markets and Management in Corporations The use up jetty Street is a movie that portrays the corruptness that can exist on Wall Street. bud Fox is trying to establish a name and a living for himself, and thus he has the endless task of trying to amplification the number of clients that he represents. 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 quite amazing how this can, almost overnight, speck to great riches and power. Bud Fox was making an honest living that is until he finally is competent to establish a relationship with Gordon Gekko-a so-called financial wizard. While 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 previous level that extend beyond just the ideas of insider trading and expand more ge nerally to discuss the unethical problems that can occur within a potbelly in general (not just on wall street), when there is insularity of management and ownership. This is important to be aw are of in a capitalistic society where many people work for other people, and or are in charge of many other people as well. It continuously causes people to question the systems in place and what can be make to eliminate these potential problems and unethical actions. The ultimate test of corporate outline 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 interval 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 job is, to maximise shareholder wealth. Managers work for the shareholders, since shareholders ar e essentially partial owners of the corporation that they learn purchased stock in. Stockholders invest their money because they hope that the value of their investment leave alone grow. They want to increase their wealth as much as possible. (Hickman 11) Unfortunately, claimants (shareholders) often have difficulty determining how well management is actually doing because of the creative activity of information asymmetry- in a sense lack of information.