What Are Some Mechanisms for Encouraging Ethical Behavior

question 28

Essay

What are some mechanisms for encouraging ethical behavior?

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Definitions:

Bearer Bonds

Bonds that are owned by the holder rather than a registered owner, and the physical possession of the bond is the only evidence of ownership.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares, typically at the discretion of the bondholder.

Bond Ratings

A classification system that denotes the credit quality and perceived risk of bonds issued by corporations, municipalities, or sovereign entities.

Financial Projections

Forecasts of future revenue, expenses, and other financial details of a company.