28 Questions
What does ethical conduct encompass according to the text?
What different societal groups consider to be ethically correct behavior
What is required to act ethically according to the text?
The ability to think through the facts of the situation and make good choices
What is necessary for good ethical judgment according to the text?
Actively considering the interests of stakeholders
What is emphasized as a requirement for ethical behavior according to the text?
The ability to make considered decisions
What is mentioned as going beyond what is legally required according to the text?
Ethical conduct
What is indicated as insufficient to ensure the ethical behavior of investment professionals and market participants?
Laws and regulations
What does ethics require according to the text?
Actively considering the interests of stakeholders
What is a potential downside of using laws to reduce unethical behavior in the investment industry?
Laws may be vague, conflicting, and too narrow in scope
What challenge arises due to the time taken for regulators' responses to enact new laws?
Problematic practices may continue or grow during the time taken for enacting new laws
How do market participants may interpret laws, according to the text?
In the most advantageous way possible
What is a consequence of laws varying across countries or jurisdictions?
Questionable practices may move to places with lax laws
Why may increased regulation and monitoring not always be the best mechanism to reduce unethical behavior?
Regulators' responses may take significant time
What is a potential drawback of a new law reducing or eliminating existing activity?
It may simultaneously create an opportunity for a different, but similarly problematic, activity
What is a potential issue with laws being subject to interpretation and compliance by market participants?
Market participants may delay compliance until a later date
What is a drawback of laws designed reactively in response to a crisis?
They may take significant time to be enacted
What is a potential consequence of laws being subject to interpretation by market participants?
Market participants may interpret the law in the most advantageous way possible
What is a challenge associated with laws varying across countries or jurisdictions?
Questionable practices may move to places that lack relevant laws
What is a potential downside of using laws to reduce unethical behavior in the investment industry?
Laws may inadvertently create opportunities for different problematic activities
What is a drawback of laws designed proactively to address existing or anticipated practices?
Laws may be too narrow in scope
What is a potential issue with laws that follow market practices?
Laws may not always address existing or anticipated practices
What is a consequence of laws being subject to compliance by market participants?
Market participants may choose to interpret the law in the most advantageous way possible
What does ethical conduct go beyond according to the text?
Legal requirements
What is emphasized as necessary for acting ethically according to the text?
Good choices in the absence of clear laws or rules
What is indicated as insufficient to ensure ethical behavior of investment professionals and market participants?
Laws and regulations
What does good ethical judgment require according to the text?
Actively considering the interests of stakeholders
Why is increased regulation and monitoring not always the best mechanism to reduce unethical behavior according to the text?
There is no simple algorithm for ethical action
What is a potential issue with laws being subject to interpretation and compliance by market participants?
Varying laws across countries or jurisdictions
What is mentioned as a consequence of laws varying across countries or jurisdictions?
Ethical conduct going beyond legal requirements
Test your knowledge of investment industry regulations and ethical behavior with this quiz. Explore the effectiveness of laws in curbing unethical practices and promoting trust in financial markets.
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