Tag:ethics and compliance
The Bulls vs. The Bears: The Legality of Short Selling “Stonks”
The Bears of Wall Street have always used their paws to swipe down on financially weak companies by further driving down their stock price. However, the Bulls, recently led by retail investors and Wall Street Bet users, have begun thrusting their horns up into the air to lead an attack on bearish institutions by forcing them to buy back the “Stonks” that they shorted. This stock trading phenomenon, backed with the subjective ethical obligation to protect the little guy on Wall Street, is called the “The Short Squeeze.” While the Bears’ strategy of short selling stocks in the financial market faces public criticism, it is entirely legal. Therefore, financial regulators should encourage these millennial Bulls to take precautions in understanding the legality of trading strategies in the free market.
Ethics and Compliance: Two Sides of the Same Coin
Most major American corporations develop and implement an ethics and compliance (E&C) program. However, too often, the ethics division of these programs falls to the wayside, with companies putting more focus on legal compliance rather than creating an ethical corporate culture. While it is true that compliance can technically function without an ethics component, a robust ethics program can be an extremely efficient way for a company to promote legal compliance, as well as consumer trust and loyalty.