Explain how the development and growth of the stock market effects the Essay

Explain how the development and growth of the stock market effects the real economy - Essay Example Stock markets have securities notified on stock exchanges and also provide private trading facilities. According to an estimate, at the close of 2012, world stock market was more than $50 trillion with US having the largest market of about 35% and United Kingdom and Japan with 6% each (Perry 1-2). Impact of stock market growth and development on economies is indeed an important area of research among economists. It provides for steering financial matters and forming future economic strategy to improve business and investment environment of a country. Thus impact of stock market growth has both direct and indirect effects on an economy. Industries, Service providers and Corporations of various types get their stocks available in stock market. Large companies usually put their stock available/ registered in many exchange markets around the world. It is done after weighing potentials of business in a specific stock market. Participant of stock markets are traders, banks, retail investors, insurance companies and corporations etc. which deem to invest, buy, sell, transfer and even evaluate their stocks through the facility of a stock market. Trading in stock market is done through evaluation and bidding process carried out among buyers and sellers who agree over a deal on value o f the product. From hedge funds to stock investors the participants of a market can perform this activity anywhere in the world. A representative of business activity carries out buying, selling, exchange or valuation on behalf of his employer to execute exchange activity. Thus companies are not physically available or do not come with their active products and investment plans but they perform these transactions virtually through their representatives. A rational response to the concept of stock exchange and its activities can be transpired as effectiveness and vibrancy of economic activities in a market.

Ford Pinto Ethics Essay Example | Topics and Well Written Essays - 500 words

Ford Pinto Ethics - Essay Example The other three survived only because special measures had been taken to prevent the rupture of the tank such as (a) plastic baffle between the axle housing and the gas tank (b) steel plate between the tank and the rear bumper and (c) a rubber lining in the gas tank. The results of the test therefore show clearly, that the fuel tank failed, yet the Company did not take any action to remedy the defect. Three of the cars fared better when some special measures were introduced, and the Company had this evidence on hand as well but this still did not factor as significant enough to merit some remedial work being carried out by the Company before getting the cars on to the market. Ford was therefore deficient in its duty of care, because when faced with such results, it should have taken greater care to ensure that the defect in the fuel tank was remedied. Secondly, there are ethical issues that need to be considered as well. The crash test results suggest that there was a danger posed to life and limb as a result of the defective fuel tanks. The question of ensuring safety of future consumers and users of the cars should have therefore been paramount in Ford’s decision as to whether to continue manufacturing the Pintos or not. However, in arriving at the decision on whether or not to market the Pintos despite the defect in the fuel tank which had been discovered, the Company had decided that in order to be competitive, the car should not cost more than $2000 and weigh more than 2000 pounds. This raises the issue of whether Ford considered its competitiveness more seriously or whether it valued the potential loss of life more seriously. Had the latter been the case, it would have taken steps to ensure that the fuel tank was replaced with a rupture proof fuel tank, which would have been somewhat more expensive. It would have als o rendered the Pinto less competitive because it would have used up