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  1. James J. Angel & Douglas McCabe (2013). Ethical Standards for Stockbrokers: Fiduciary or Suitability? [REVIEW] Journal of Business Ethics 115 (1):183-193.
    What are the ethical obligations of the sellers of financial products to their customers? Stockbrokers in the U.S. have a legal and ethical requirement to recommend only “suitable” investments to their customers. This is a fairly weak standard. Currently, there are proposals to raise the standard to a fiduciary one in which the recommendations would have to be in the best interests of the clients. Brokers sell solutions to financial problems. Similar to an auto mechanic or a doctor, the product (...)
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  2. James J. Angel & Douglas McCabe (2013). Fairness in Financial Markets: The Case of High Frequency Trading. [REVIEW] Journal of Business Ethics 112 (4):585-595.
    Recent concern over “high frequency trading” (HFT) has called into question the fairness of the practice. What does it mean for a financial market to be “fair”? We first examine how high frequency trading is actually used. High frequency traders often implement traditional beneficial strategies such as market making and arbitrage, although computers can also be used for manipulative strategies as well. We then examine different notions of fairness. Procedural fairness can be viewed from the perspective of equal opportunity, in (...)
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  3. James J. Angel & Douglas M. McCabe (2009). The Business Ethics of Short Selling and Naked Short Selling. Journal of Business Ethics 85 (1):239 - 249.
    The controversy over short selling has continued unabated from the introduction of modern equity trading in Amsterdam in 1610 to the present day. Nevertheless, the business ethics literature has not really addressed short selling. Short sellers not only profit from the misery of others, they also create it through their selling activities. However, they also provide a socially useful service by making prices better reflect true values, protecting other investors from purchasing overpriced securities. Short sellers can also help to provide (...)
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  4. James J. Angel & Douglas M. McCabe (2009). The Ethics of Speculation. Journal of Business Ethics 90 (3):277-286.
    Recently there has been an outpouring of consumer frustration over rising food and energy prices. Many politicians railed against “speculators” who allegedly drove up the prices of key necessities. Is speculation unethical? This article reviews the traditional arguments against speculation. Many of the standard criticisms confuse speculation with gambling. In much the same way as ethicists now draw distinctions between usury and normal business interest, we draw a distinction between socially useful speculation and gambling. Gambling involves taking on risk with (...)
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  5. James J. Angel & Douglas M. McCabe (2008). The Ethics of Managerial Compensation: The Case of Executive Stock Options. [REVIEW] Journal of Business Ethics 78 (1-2):225 - 235.
    This paper examines the ethics of contemporary managerial compensation in the context of executive stock options. Economic considerations would dictate that executive stock options should be adjusted to eliminate the effect of overall stock market movements which are beyond the control of the executive. However, in practice, most executive stock options are not adjusted to control for these outside factors. Agency considerations are the most likely culprit. Adjusting for the influence of outside factors, such as a generally rising stock market, (...)
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