Rogue Trading within Bank Industry about Nick Leeson Research Paper

Rogue Trading within Bank Industry about Nick Leeson - Research musical theme ExampleThe research tells that incorporated malicious gossips can be of different types and in any kind of corporate scandals generally top executive managements are involved due to personal gains and other biasness. Corporate scandal may include the offences like frauds, insider trading, manipulation of pecuniary statement for misguiding stakeholders, excessive compensation to top executives etc. Among these monkey trading is also a kind of corporate scandal which hurts investors interests. Generally, those dealers who are authorized by corporate bodies as an employee indulge in such(prenominal) activities. The rogue trader acts as an independent trader in high risk environment. To make huge profits, such traders invest in risky financial instruments like derivatives. Here the potential of losing money is also high. Ethically responsible firms never allow such risky investments considering shareholde rs interest and business sustainability. Since the rogue trading case of Nick Leeson in 1995, there deem been several instances of unethical and unauthorized trading that caused billions of losses to shareholders. The persons found to be engaged in pigment trading are charged with severe offences and have to face legal consequences. The rogue traders have taken the investments activities to the level of gambling where along with huge returns, risks are also too high. In most cases rogue traders keep doubling their bets in order to recover the previous losses without considering future consequences. The tricks doubling up the bets are quite common for them for camouflaging the previous losses with higher level of risk as by averaging down, they try to reduce the volatility. In a simpler term, when a