Business Ethics Article Example | Topics and Well Written Essays - 250 words - 5

Business Ethics - Article Example In this way they make money. The SEC put out a warning that they will be looking closing at hedge funds that make over 3%. Is it right for the SEC to do this? There are a bunch of moral questions involved in this issue. One could place moral questions on the role of hedge funds. Is it right for hedge funds to purchase stocks expecting to make a profit because they know the stock's value is overly price. 2. The SEC should not put out such warnings because they will be capping the profit initiative, the ability of people to make a profit whenever they see it. This sounds more like a right under our free market system. Another argument is that it is not possible to truely regulate the market without be unfair to those who have made an earnest buck in the market. Some investors may be lucky, or some hedge fund operators may have done good due diligence research and they should be awarded whatever profit that comes their way. 3. The SEC should put out such warnings. Hedge funds have been known to create create market changes based on pure speculation, resulting in market busts where a lot of people lose their money.