Essay --

The author George Elliot once said â€Å"don’t judge a book by its cover.† Appearance can be very misleading, and you shouldn't prejudge the worth or value of something by its outward appearance alone. This philosophical idea has been included in many works of literature, including the timeless classic To Kill a Mockingbird written by Harper Lee. The novel takes place in the town of Maycomb, Alabama during the 1930s. Many citizens of Maycomb tend to make judgements based on outward appearances alone. In the novel, Lee uses minor characters such as Boo Radley, Mrs. Dubose, and Tom Robinson to convey the book’s theme of prejudice. Boo Radley is thought to be a malevolent, soulless, deceitful person, but he proves to be a caring, good-natured person. In Chapter 1, Jem offers his perception of Boo Radley to Scout and Dill: " ‘Boo was about six-and-a-half feet tall, judging from his tracks; he dined on raw squirrels and any cats he could catch, that’s why his hands were bloodstained—if you ate an animal raw, you could never wash the blood off. There was a long jagged scar that ran across his face; what teeth he had were yellow and rotten; his eyes popped, and he drooled most of the time’ " (16). Jem perceives Boo Radley as being a â€Å"monster† instead of being a man. Jem comes to this conclusion despite having never even seen Boo Radley in person. Jem’s understanding of Boo Radley is based on the rumors that he has heard about him. In Chapter 8, after the fire at Miss Maudie’s house, Scout notices that she was wrapped in a blanket that she did not have with she l eft the house. Scout asks Atticus who was the person that put the blanket around her. Atticus tells Scout, "Boo Radley. You were so busy watching the fire you didn't know it when he... ...ir if they tried. In our courts, when it's a white man's word against a black man's, the white man always wins. They're ugly, but those are the facts of life† (295). From the very beginning of the trial, the jury was going to find Tom Robinson guilty since it was a black man's word against a white man’s word. The all-white jury never wanted to see a black person win against a white person. After he is found guilty, Tom is sent to a prison where he tries to escape but is shot to death by the prison guards. Mr. Underwood writes an editorial in which he compares Tom being shot to death to hunters shooting mockingbirds. Like a mockingbird, Tom never caused any harm to anyone. Tom is â€Å"shot† by the jury when they assume that he is guilty because he is a black man and his alleged victim is white. In the end, an innocent man was found guilty because of the color of his skin.

Internet and Books Essay

In today’s modern world, technology has a great influence on our life and time. Back in the early 19th century, when electronic devices had not been invented, the population could only use printed word such as books, posters, newspapers or magazines, to gather information. Later, in the mid 20th century, the use of computers, televisions and radios helped people to know about the incidents happening all around the world, more easily. Now, in the 21st century, the creation of internet and other devices to access it has helped us to attain gigabytes of information, just with the click of our mouse. The internet has made it possible for us to acquire answers for almost all of the questions that we ask, and has alleviated the access to information to almost every topic imaginable. Firstly, internet helps to save time and effort. All you need to do is type in your question and click SEARCH. It can give an answer to almost every question type in, and it is usually very quick, speedy and fast. On the other hand, using books or other printed texts can waste time, as you need to find the appropriate book and then search for the information you need from it. For example, while searching for a book in the library, you waste time trying to reach there, and even more time trying to find the book you need. Despite this, time is also lost when you try to find the information that is useful to you from the book. Whereas the internet acts as a filter that sieves out all the data you need, in a span of seconds. However it can be argued that using electronic devices can cause distractions and disturbances. Using the internet can divert your attention to some other unrelated site and will cause you to waste time. For instance, you may login to facebook or twitter, or check your mail instead of researching and using the time well. On the contrary, you cannot be easily distracted in a library where silence is preferred, and is filled with people who want to work. But if the internet is used properly, and if the person has a self control over himself the internet has more advantages comparing to printed texts. So in short internet can be a time-saver only if used wisely. Alternatively, the internet can sometimes provide us with unreliable information. It is like a blank page in which people are allowed to post whatever they want, and sometimes even the wrong information. As exemplified by blogs, in which anyone can post their opinions and views on a topic, the internet can be a source of unreliable and inaccurate information as it contains the judgement of different individuals and not the actual facts. On the contrary, printed texts can be a great source of reliable information. Books are written by experienced authors who have researched well about the topic themselves before publishing it. A library can assure you that the book in your hand is dependable and trustworthy. In spite of being unreliable, internet can provide us with up-to-date data. It offers information on the most recent discoveries and inventions, the latest cars or other products and about the contemporary incidents and happenings all around the world. However once a book is published, any recent findings cannot be added to it. There are always new developments in the field of health, science, technology and politics that the library simply cannot keep up with. Therefore, the internet can provide us with the latest news about our modern day developments and can be dependable only if used properly by checking the sources of a particular website. Thirdly, glaring at a screen for a long period of time can cause various eye and back problems. Computer vision syndromes like eye strain and cataracts are caused by glaring at the computer screen for prolonged periods. Millions develop a condition called ‘dry eye’, resulting in gritty, itchy, inflamed eyes, due to staring at the screen for hours. The light from computer screens can cause drastic problems to your eyes, and sometimes even partial blindness. Unlike computer screens, books can be very easy to read as they are just words printed on paper. However there are many solutions to prevent the damage caused to eyes by computer screens. Screen filters can be bought to reduce the amount of light radiation hitting our eyes. There are also many softwares that can transfer the information audibly or with the help of videos, and do not require data to be read. Regular breaks, and turning away from the screen constantly can also help in avoiding eye and back problems. Usually, there is an option to zoom in, which enables people to read easily. Unlike computers, books cannot be zoomed in, when the letters are too small to be visible, causing eye problems as well. So the problems caused by glaring at computer screens or reading the small printed texts in books, can be reduced by taking regular breaks and exercises, as anything in excess is not good for our health. Moreover, a lot of paper is wasted in the creation of books and magazines. Deforestation, being one of the greatest threats that humans are facing today, is increased by the production of paper in books. A few sheets of paper could be worth one tree. Hence the number of trees is reducing day by day. Obviously, trees are vital for our living as they are the natural producers of food. Deforestation not only causes scarcity of food and other resources, but also results in the rise of the earth’s temperature, causing global warming. In contrast to books, modern technology like mobile phones, computers or tablets does not harm the environment to a very great extent. In the case of computers the energy used is electricity, which is renewable and can be created again and again. The internet is a huge database, and more information can be adjoined into it, very easily. However books are created from sheets of paper, and if the number of books increase, then the level of deforestation can increase correspondingly. To reduce the destruction of the earth’s forests by deforestation, paper should be recycled and not wasted. Instead it is much easier to use the help of modern technology that functions with the help of renewable energy, which does not have a great impact on nature. Therefore modern electronics has made it possible to overcome a huge problem to the environment. In conclusion, modern technology has many positive uses; it has made the world a smaller place by allowing us to contact individuals all around the world, many electronic devices are very cheap making it affordable to all and has also allowed people to find out about the news and incidents happening all around the world. But every good has some bad, and the extensive use of technology can be harmful to our health. I strongly believe that modern technology has been very helpful and useful to the human population. It has eased our access to information in very sustainable manner, and has connected the world together.

Is Insider Trading Moral Or Illegal Finance Essay - Free Essay Example

Sample details Pages: 9 Words: 2631 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? In the latest years insider trading scandals were, very often, holding the first page of well-known journals or news TV channels. Pushed by mass media, the public perception on insider trading has been tailored as something wrong, unethically scandalous, with bad influences on everybodys welfare. The most famous was Martha Stewarts case who was investigated for using inside information about ImClone, but, in fact, accused of deceiving, together with her broker, the Securities and Exchange Commission (SEC) by coming up with an implausible explanation of why she sold her shares. Don’t waste time! Our writers will create an original "Is Insider Trading Moral Or Illegal Finance Essay" essay for you Create order The case received a high amount of media attention, and scholars questioned journalists professionalism and judgment in this type of cases (Brinkley, 2008). In the United States, well-known companies were involved, directly or indirectly, in insider trading investigations initiated by SEC. In May 2010, Walt Disney Company had to face an insider trading investigation due to one of its employees actions. As presented by the SEC investigation (U.S. SEC, 2010), Bonnie Jean Hoxie, an administrative assistant to a high-level executive, and Yonni Sebbag, her boyfriend, got involved in a brazen scheme to sell material non-public information about Disneys financial results and strategic intentions. In 2006, Goldman Sachs former employees, Plotkin and Pajcin, were accused of organizing a widespread and brazen international scheme of insider trading (U.S. SEC, 2006), the illicit revenues resulted from this affair being of at least $6.8 million. In 2001, Microsofts securities traded by Pequot Capital Management on insider trading information supplied by David E. Zilkha (Microsofts employee) generated $14,769,960 gains to the Pequot funds (U.S. SEC, 2001). Behind these famous cases in which the gilt and illicit gain resulted from trading inside information are obvious, legal insider trading may exist (Shell, 2001) and many scholars talk about ethical forms of insider trading (McGee, 2004). This report will examine the theories applicable to insider trading legally and morality depending on the effects that insider trading may have on financial markets evolution. DEFINITION In 1934 Act, the U.S. Congress legislated insider trading as damaging practice for financial markets, delegating to the SEC regulating responsibilities. Consequently, the SEC defined insider trading as buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, non-public information about the security (U.S. SEC, 2010). In the same category, the SEC included tipping inside information, trading by the tipped ones, and trading by persons who steal this information. Additionally, two laws were enacted The Insider Trading and Securities Fraud Enforcement Act of 1988 and The International Securities Enforcement Cooperation Act of 1990 (U.S. SEC, 1998) to enlarge the SEC area of influence and regulation, not only inside the U.S., but also in relation with foreign organizations. To describe the financial market it can be said that in todays market selling or buying securities is much easier than a few years ago. Regardless the action initiated by one party, the final result is the same: acquiring or renouncing to a companys ownership. In 1966 Manne divided these shareholders into investors and traders based on their intentions timeline: long-term, stable revenues for investors and short-term, speculating gains. Considering the players presented above, acting on inside information means that one shareholder sells or buys securities after receiving non-public information about the company or other factors with significant impact on its financial results. The information can be delivered by a company insider, like executives or employees. The law condemns these types of practices, regardless the sources of information, the method of obtaining it, or its real effects on markets efficiency. If the legal requirements for insider trading are clear, rigidly specified by the law, not the same think can be said about the ethical approach of insider trading. Over time the trades based on inside information raised many reactions, with opinions ranging from one extreme to another. ETHICS CURRENTS AND RELATED THEORIES Overcoming the technical definition and analysing what notorious theorists have written about insider trading two different currents of opinions can be distinguished: (i) authors who strongly believed that insider trading is always illegal, immoral, harmful e.g. Werhane (1991), Moore (1990); (ii) authors with opposite positions, sustaining the beneficial effects of insider trading over markets efficiency e.g. Manne (1966), Leland (1992) Machan (1996), McGee (1999, 2004). A short overview of the arguments developed by these authors will be next presented. Moore (1990) examined the ethical reasons against insider trading, such as unfairness, misappropriation of information and damages to good-faith investors and markets, concluding that insider trading real harm are its effects on fiduciary relationships. Werhane (1991) stated that insider trading is unfair to shareholders and other managers from whom that information is withheld. The insider trading issue has been discuss ed for the first time in economic literature by St. Thomas Aquinas (1225-1274) in his Summa Theologica written in the thirteenth century (McGee, 1990). In his writing Aquinas argues that a merchant, arriving in a city to sell his wheat, is not under the obligation to inform his buyers that similar merchants are on their ways to the city. In other words, not disclosing non-public information and taking benefits of this action is not wrong. Manne (1966), a well-known defender of insider trading, insisted for not seeing it in white and black colours, but for deepening the analysis through some additional questions: first, trying to find the winners and losers from trading inside information; second, searching the long-term effects of insider trading; third, if trading on inside information is, indeed, evil finding the way to avoid it and evaluating the costs. Leland (1992) linked the concept of insider trading with markets uncertainty and their specific functioning mechanisms. In his research Leland showed that insider trading can have several benefits such as (i) shares prices reacting better and higher; (ii) markets delivering increased expected real investment; (iii) decreased liquidity; (iv) gains for both, insider traders and owners of investment projects; (v) outside investors and liquidity traders will be hurt. Machan (1996) explained that insider trading can be formulated as using for financial advantages the information acquired from non-public sources. The way the information is obtained and the causation of the insiders act can make the difference between fraudulent intentions and morally right actions. McGee (2007a) evaluated insider trading through ethics approach, concluding that this practice should not be prohibited by laws, unless clear damaging effects are identified violating private peoples rights or markets efficiency. Over time two main theories were used to assess the ethical side of insider trading: the utilitarian theory an d the right-based approach. Summarizing, the utilitarianism states that an action/situation is good as long as the benefits are higher than the costs. McGee (2007b) proposes a logic scheme to assess ethical side of utilitarianism (see appendix 1). Furthermore, additional conditions are included in the utilitarian equation, conditions related with assessing the breach of fiduciary duty before determining the gains (see appendix 2). Still, the utilitarian theory is not perfect and some problems can be mentioned (McGee, 2009), such as: (i) difficulties in measuring the gains and losses; (ii) individuals benefit or are harmed differently from certain rules; (iii) individuals have different utilities/values for different things; (iv) rights are not taken into consideration. Finding a perfect fit between utilitarian theory and insider trading is not obvious. When trading securities the estimation of gains and losses is almost impossible. Moreover, identifying buyers and sellers its not possible due to anonymous character of stocks trades. Those who are selling dont know the identity of those who are buying (Ali, P.U., Gregoriou, G.N., 2009). The reasons for trading are different among traders (investors or inside traders), and consequently they have different utilities of their investment decisions. Because estimates of gains and losses are no longer needed, the rights theory eliminates one of utilitarian theory weaknesses. Instead of questioning if gains are higher than losses, the new theory evaluates if someones rights were violated (McGee, 2009). As for the previous theory, a flowchart drawn by McGee simplifies the logic (see appendix 3). The rights theory encounters the same problem as utilitarian theory. The parties involved in trade are not known which makes it more difficult to identify their rights. Supporting the theory of rights Ali (2009) argues that it can be successfully applied only if the property limits are specified for both parties, wh ich is not always the case for insider trading. INSIDER TRADING LEGAL ASPECTS As mentioned before, the legal framework for insider trading is provided by the 1934 Act, sections 16(b) and 10(b). Sections 16(b) refers to companies insiders like executives, high-level employees and to shareholders who own more than 10% of the shares because, in legal view, they will be more incentivized to use inside, sensitive information due to their high stake in the company. The section censures only the profits obtained in less than six months period (U.S. SEC, 1998). Section 10(b) broadens the spectrum of activities considered as insider trading to any purchase or sale of any security registered or not registered, regardless the trades status, if its acted with manipulative or deceiving intentions (U.S. SEC, 1998). Trying to make the law as broaden as possible in order to include all types of frauds, the SECs approach leaves place for many interpretations and ingenious schemes. Summarizing, the insider trading can be proved with the existence of two criteria: (i) a dir ect or indirect source of non-public, corporate information, and (ii) the use of this information for personal benefits, consciously knowing that is not fair for other people who dont have access to the same information. In order to avoid charges, the insider should disclose his information prior to transactions or refrain from trading until the information is available to all market traders (U.S. SEC, 1998). The discussion of the legality of insider trading which does not involve market manipulation or abuse of dominant position must touch two critical points: (i) the existence of legal provisions related to insider trading effects on market which could, theoretically, differentiate the gravity of legal charges or set-up a different reason for acting on inside information; (ii) the fairness for other traders could have different levels? In its present form, the law does not specify legal distinctions based on the effects that insider trading could have on market operations . Acting on inside information to manipulate the market or abusing of the companies/personal dominant position may or may not be intermediary steps for those involved in insider trading, the final target remaining the achievement of personal financial advantages. As an exemplification, in 1998, Ma and Sun summarized the motives for which managers or shareholders would involve in insider trading as being: (i) portfolio diversification and liquidity adjustment; (ii) corporate control; (iii) sentimental reasons; (iv) insider trading based on private information. For all four reasons, the final outcomes are personal financial advantages for insiders involved in trading. In laws approach the use of inside information at a lower level which will not trigger a significant impact on market is not less serious than any other insider trading. Regardless the reasons or the amplitude of actions, the law is rigid in considering any form of insider trading as illegal. The same logic can be used to assess the level of fairness for other people trading in good faith. The fact that the insiders transactions dont have a significant amount cant change the unfairness of insider trading. The market traders still have different levels of information and act according to them. In conclusion, as long as the traders were performed on inside information, the actions effects are no longer relevant for the law. Insider trading is illegal. IS IT INSIDER TRADING MORALLY RIGHT? In general insider trading practices are perceived as unfair and immoral behaviours with very bad consequences for markets and society, preventing equality among market players. Next to the law, ethical reasons are highly used for condemning insider trading. In 2002, Abdolmohammadi, M, and Sultan, J., showed that ethical reasoning is strongly linked with ethical behaviour, meaning that whenever a person uses ethical reasoning it is a low probability for that person to involve in insider trading. Still, part of scholars strongly state that insider trading can have favourable, morally acceptable, sides which may change the current black picture. In order to evaluate insider trading moral aspects a separation of market manipulation from acting on inside information must be made. This separation is based on Engelen and Liedekerkes reasoning (2007) who, starting from Mannes distinction between market manipulation and insider trading, argued that while insider trading by definition in creases market efficiency, market manipulation has not a positive effect on markets efficiency, deregulating dramatically the stocks price (see appendix 4). In assessing the morality issue of insider trading three dimensions can be considered: the relationships among financial markets players, the methods used to obtain inside information, the insider trading effects on market. Trades on todays financial markets imply the existence of sellers and buyers who dont know each other and who, a priori, have different amounts of information. At every moment in time, one seller/buyer may have information which is unknown to other players, information which are not necessarily obtained from inside. Using this information to trade cant be considered immoral or unfair for the rest of the market. Furthermore, there is no legal obligation to share it with other players (unless a previous contract with clear provisions exists). The same reasoning can be applied if we supplement this variati on of information among traders with inside information. The methods used to obtain or to diffuse inside information can be questionable. If the information is stolen, spied or extorted, that can be considered an immoral action, but doesnt make insider trading immoral (Machan, 1996). Obtaining the information and trading on it are two separate actions. One harmless way of obtaining non-public information can be by accident. Actually, Shell (2001), developing his reasoning for legal insider trading, described one innocent case of obtaining non-public information in an elevator, by accident. Insider trading can have favourable effects on financial markets. McGee (2007; 2009) summarizes all the arguments developed by theorists over time to sustain insider trading, arguments such as: (i) trading on inside information can be seen as a supplement to executives compensation, decreasing companies costs; (ii) acting on inside information increases market efficiency; (iii) rights-based arguments sustaining the owners right to use their properties as they want; (iv) insider trading can support management to fulfil its obligations to shareholders, meaning increased stocks prices. Next to these arguments the increased market liquidity (Aktas, N., et al., 2007) can be added. If the overall effects on market are positive, can we draw the conclusion that what is good for market (and, implicitly, for society and people) is also morally acceptable? The response could suggest that insider trading can be defined as moral as long as insider traders will not exaggerate in their practices only by motivating that is good for people, but using insider trading as a mechanism to leverage the market. Appendices Appendix 1 Modern Utilitarian Ethics Source: McGee, R.W., 2007b, A Flow Chart Approach to Analyzing the Ethics of Insider Trading, Andreas School of Business Working Paper Series, Barry University, Miami Shores, (September 2007), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1015052 Appendix 2 Electic Utilitarian Ethics Source: McGee, R.W., 2007b, A Flow Chart Approach to Analyzing the Ethics of Insider Trading, Andreas School of Business Working Paper Series, Barry University, Miami Shores, (September 2007), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1015052 Appendix 3 Rights-based Approach Source: McGee, R.W., 2007b, A Flow Chart Approach to Analyzing the Ethics of Insider Trading, Andreas School of Business Working Paper Series, Barry University, Miami Shores, (September 2007), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1015052 Appendix 4 The Impact of Insider Trading on Security Prices Source: Engelen, P.J., and Van Liedekerke, L., 2007, The Ethics of Insider Trading Revisited, Journal of Business Ethics, p. 497-507, Volume 74