Understanding Ethics in Investment Professionals

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the definition of ethics?

Ethics is a set of shared beliefs about what is good or acceptable behavior and what is bad or unacceptable behavior (correct)
Ethics is a set of societal expectations
Ethics refers to acceptable behavior only
Ethics is a set of personal beliefs

Which of the following best describes ethical conduct?

Behavior that aligns with societal expectations (correct)
Conduct that brings positive results for the individual regardless of impact on others
Behavior that benefits only the individual
Conduct that disregards moral principles

Who are considered stakeholders for investment professionals?

Only coworkers
Clients, employers, and society at large (correct)
The individual investment professional only
Only clients

What does ethical conduct in the context of investment professionals involve?

Balancing self-interest with the impact on others (A) Signup and view all the answers

Match the following terms with their descriptions:

Ethics = Set of shared beliefs about good or bad behavior Ethical conduct = Behavior consistent with moral principles and societal expectations Stakeholders = People directly or indirectly affected by conduct Positive results for you, negative consequences for a stakeholder = Example of ethical dilemma Signup and view all the answers

Match the following characteristics with their descriptions:

Balanced behavior = Behavior that considers both self-interest and impact on others Improving outcomes for stakeholders = Goal of ethical conduct Consistent with society’s ethical expectations = Aspect of ethical conduct Directly or indirectly affected by the conduct = Stakeholder definition Signup and view all the answers

Match the following examples with their corresponding stakeholders:

Clients, coworkers, employers, and the investment profession = Examples of stakeholders for investment professionals Coworker affected by a decision = Example of a stakeholder impacted negatively by a decision People affected by behavior = Definition of stakeholders Behavior that follows moral principles = Aspect of ethical conduct Signup and view all the answers

Match the following concepts with their definitions:

Good or acceptable behavior vs. bad or unacceptable behavior = Description of ethics Behavior that balances self-interest with impact on others = Definition of balanced behavior Set of shared beliefs about what is good or bad behavior = Ethics definition Behavior that improves outcomes for people affected by the conduct = Definition of improving outcomes for stakeholders Signup and view all the answers