What are some examples of unethical business behavior in Wall Street?

For the main characters in “Wall Street,” the object is to break or bend as many rules as they can get away with. Dealing dishonestly, flouting securities regulations, cheating, misleading, manipulating, bribing – they boast a toolkit of unethical practices.

Is arbitrage morally wrong?

Arbitrage—the simultaneous buying and selling of a product from different markets to take advantage of price differences between them—is generally regarded as a morally neutral market strategy that’s at the heart of how anyone stands to make money in the markets.

What are examples of business scandals?

What are Examples of Business Scandals?

• United Airlines. It’s hard to forget the scandal United Airlines faced after security officers forcefully dragged a passenger off an overbooked flight.
• Equifax. Equifax faced a large ethical scandal when hackers stole data from more than 148 million consumers.
• Enron.
• Google.

What are the three conditions for arbitrage?

There are three basic conditions under which arbitrage is possible:

• The same asset trades for different prices in different markets.
• Assets with the same cash flows trade for different prices.
• Assets with a known future price trade at a discount today, in relation to the risk-free interest rate.

Is arbitrage trading illegal?

Arbitrage trading is not only legal in the United States, but is encouraged, as it contributes to market efficiency. Furthermore, arbitrageurs also serve a useful purpose by acting as intermediaries, providing liquidity in different markets.

Which company is unethical?

Famous Examples of Unethical Business Practices

• Wells Fargo. There has been one massive scandal after another at Wells Fargo.
• Ferrero USA. Ferrero USA is the company behind the brand Nutella.
• Volkswagen.
• Foxconn.
• Coca Cola.
• Halliburton.

How is Volkswagen unethical?

In 2015, the company confessed to cheating emissions tests on 11 million vehicles across the globe. VW knew of the problems with its vehicles. As is common in developing scandals and the reputation crisis that accompany them, instead of responding ethically, leadership engaged in reckless decision-making.