Fairness of Financial Systems and Markets Coursework (Coursework Sample)

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Fairness of Financial Systems and Markets
What one needs to ask him/her is what it means for a financial market to be fair? Since the beginning, I have been amazed at the way economy functions. I have always believed in fairness when it comes to financial systems and markets. When financial systems and markets are not fair, the trading environment becomes harsh to all parties, and in most cases, one party is always exploited. Once exploitation is experienced in financial systems and markets, several players get eliminated or withdraw due to poor harsh or exploitive environment.
For us to understand the financial systems and markets, we need to realize that exchanges are meant for resources to be allocated efficiently. At the heart of efficiency come the prices that need to be accurate. Fairness is when products and services are well priced in the market. This leads to the satisfaction of both parties. Unfairness only comes in when prices are fixed for personal gain. Several rules have been set to level the playing field in the trade department. For the market to be fair to all players, practices such as Regulation Fair Disclosure should be implemented. Prices are only reasonable when all information is priced in, and there should be more other participants involved in that process.
However, some investment banks do play with the price of their services, and this seems to be part of their culture. The bank traders cooperate with each other set some hidden charges to ...