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Stock market is meant to facilitate the exchange of securities between traders. It enables the reserved finances to become a part of commercial projects, thus stimulating economy, as whole. For business, the importance of stock trades cannot be overestimated. This is because the main factor that enables business to exist, in the first place, is the availability of investments. But it is only stock market that provides the potential investor with information about commercial validity of every particular business. Companies are able to raise capital through participating in stock market trades.
This allows them to attract investors by making the information, about its stock market dynamics, publicly accessible. Being able to openly trade its shares on stock market has a crucial significance for any company. This is because it automatically suggests that such company is financially stable, because financial stability is the most important precondition for any company to go public. As the potential investor, Im interested in only one aspect of stock trades possibility to make a good profit, within comparatively short period of time. Everything else can only constitute any interest for me, for as long as it is relevant to making money. There is always risk involved in trading on stock market.
It is well known that its dynamics can be affected by seemingly unrelated political events and by the news of natural disasters. The value of shares can drop drastically, because of company owners failure to provide the vital financial information, for example. Therefore, the potential investor needs to be always ready to sell his shares, before they get devaluated. If company does not utilize proper financial management, it risks bankruptcy, as the result. This was exactly the case with Enron, when its top officials failed to report all aspects of companys financial dealings to the board of directors. (2) When I have a steady salary, which will allow me to invest in companies stocks, the different ethical issues, related to their commercial functioning, will concern me the least. It is important to realize that making profit has nothing to do with trying to make the world a better place to live, as the proponents of political-correctness would like us to believe.
Whether it is proper to buy the stock of the company that exploits child labor is the subject of bellyful philosophizing and it is unrelated to the issue of making profit. Workers at Nike's factories in Thailand are often forced to work for as long as 12 hours a day. The production cost of pare shoes is about 10 dollars, while this company sells them for 80 - 100 $ in U. S. Yet, Nike's financial standing is very stable and many people were able to raise a lot of money, investing in this company. We need to understand that economy has nothing to do with ethics.
As a matter of fact the more profitable any particular company is, the more it is immoral. I believe that my code of ethics in no worse than of those people, who suggest that using child labor is wrong. I think that it is appropriate. Our own President promotes the concept of Globalization, which will encourage exploitation of child labor in the countries of the Third World even more. Should I be trying to become holier than the Pope, as famous saying goes? We live in capitalist society, which means that our morality and religion are defined by the current state of economics.
Therefore, it would be immoral to suggest that there can be anything wrong in investing in companies that practice dubious business methods. This is because, if we stop thinking about making profits, as the priority, we might as well embrace Communism or become monks. But if we want to become real businessmen, we need to act like businessmen do. Bibliography: Stock Market. 2003.
Wikipedia. Retrieved December 20, 2006 from web Yahoo Finance Market Tracker. Stock Screener. (2006). Retrieved December 20, 2006 from web
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Research essay sample on Stock Market Child Labor