Stess and the Securities Industry
The securities industry boasts a stressful working environment that puts an emphasis on profit alone sometimes causing it's workers to resort to unethical methods of trade. The result is mistrust between the common investor and the brokerage houses they use to process their trades. This cheating in order to gain an advantage over the market is best focused on with the insider trading scandals of the past and their repercussions on how business ethics should be practiced in the workplace today. The 1980's were a revolutionary period for stock trading. New computer systems transformed the industry making the exchange faster to transact and easier to monitor. This gave way to the exposure of insider trading and traders had to decide for themselves whether they would succumb to the fast money or stick with standard methods. This division was based upon the individual business ethics, which, in time, would become more defined with the downfall of notorious criminals like investment banker Dennis Levine (Frantz 44). Oliver Stone's movie Wall Street analyzes this conflict between right and wrong and gives the average person a more in depth view of how a trader can use inside information to boast more profit.
The two landmark cases of Chiarella vs. the Supreme Court and Dirks vs. the Supreme Court represent two exceptions to the use of inside information. Bud's story is much like the rest of the inside traders. He is from a middle-class family and the power of money seduces him into taking shortcuts. ). "Give me guys that are poor, smart, hungry, and no feelings." is what Gekko looks for and uses (Stone). Dennis Levine started out much the same and worked himself up through illicit trades to become one of the biggest "crooks" on Wall Street (Widder 5). Levine and Bud's similar rationalization for his insider trading was that "everyone was doing it" (Widder 5). Both men also eventually get caught and go to jail. However, since coming out of jail Levine has reformed his ways and turned to writing and lecturing on business ethics using his own story to persuade others not to stray from what is right (Paltrow 4). His reform has set an example for others to follow. Entry-level employees in large brokerage firms work long hours and must withstand a great deal of pressure to succeed. Those who choose the right stocks and get the right clients advance, while the others wait their turn. Oliver Stone captures this atmosphere in his movie Wall Street, the story of a young stockbroker, Bud Fox, who is allured by money and power to join Gordon Gekko, a dirty inside trader. When the movie begins Bud is a lowly broker stuck in an entry-level position. His workplace is a frantic mess of cubicles and computers filled with other employees all with the same dream of earning the most money for the firm. Bud finds himself losing money and close to failure when he is given an opportunity to exploit his inside information on an airline for the profit of Gekko. He is then taken under Gekko's wing and starts to steal files from legal offices to gain information on companies. (Stone) People generally learn from their mistakes and in the case of once powerful Dennis Levine can even use their experience to teach others. Cheating, in any form, is wrong and the worker who thinks they are invincible to the law is working on hourglass time. The workplace should be
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Approximate Word count = 1461
Approximate Pages = 6 (250 words per page double spaced)
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