Armando Goytia, Charlenne Burgueno, Daniel Nava, Dana Ortega, Mi Tran FIN 370
Amazon is one of the largest companies selling products online. They specialize in vendors and/or have individuals send an item to the Amazon company warehouse and Amazon.com can sell the product. This company is versatile and sells all items from sleep wear to cook ware. Basically, vendors, individuals, and Amazon’s warehouse can all sell goods and make it available to do so. Like all companies, Amazon has policies and procedures to protect both the buyer and seller. Role of Ethics and compliance
Amazon’s compliance and role of ethics are of protection and integrity. Knowing that all parties’ interest helps the credibility of the company. Amazon’s corporate communicates this standard through its Code of Business Conduct and Ethics. They enforce ethical compliance through annual audits. Amazon’s corporate also employs the Committee of Sponsoring Organizations of the Treadway Commission (COSO) to evaluate its internal sectors to overlook the financial reporting against mandatory internal criteria. COSO’s studies indicate that the two common fraudulent actions include incorrect revenue recording and asset overstatement (Beasley, Carcello, & Hermanson, 2010). According to COSO’s guidelines, Amazon’s 2010-2011 audits conclude the company’s consolidated balance sheets, operation statements, stocks, and cash flows were in compliance. Procedures
Procedures that Amazon.com, ensures ethical behavior, is the company governance. In this governance rules need to be regulated. “Amazon.com employees should always act lawfully, ethically, and in the best interests of Amazon.com.”(Amazon.com, 2013). This is the code of conduct within Amazon.com. From reading the codes all topics are covered. For example, it mentions everything from compliance with regulations, laws, conflicts of interest, insider trading policy, harassment, discrimination, health and safety, price fixing, violation reporting; recordkeeping, financial integrity, bribery, periodic certification, and even the board of directors. For obvious reasons, discrimination of any kind will not be tolerated.
How financial markets work in the United States.
A financial market is where investors and companies buy and sell financial securities, commodities, bonds, stocks, and other goods of value at low prices and/or transaction costs that reflect supply and demand. This is an open and regulated market for companies to obtain large amounts of financial capital to grow their businesses. Financial markets are classified by two categories: capital market and money market. Capital market is a place where new and existing securities are traded that involves two types, primary market and secondary market. Companies engage in the financial market issuing shares of stock to raise funds for their businesses. As for investors, they buy stock with the hope that it will pay dividends, or earnings. However, there is no guarantee that the price of stock will increase in value or it will pay dividends. Investors buy and sell shares in the stock market describe as the secondary market. The amount of money are involved does not go to the company. The value of a company is worth whatever the total of its stock is currently worth on the market. Therefore, a company has to make known of its financial health to investors include the company has good products and services that they are generating revenue and profits. If the company is not making profits and/or growing properly then investors would want to sell the stock that affect the traded price to decrease, vice versa, if a company is doing well and making profits then more investors would want to buy the stock that affect the traded price to increase. Identify processes the organization uses to comply with SEC regulations
The SEC is a regulatory watchdog, which was created in the 1930s...
References: SEC Filings: Forms You Need To Know. October 2012. Retrieved from
Coso. (2013). Retrieved from http://coso.org/
Titman, S., Keown, A. J., & Martin, J. (2011). Financial Management. Principles and Applications (11th ed.). Retrieved from https://ecampus.phoenix.edu/content/eBookLibrary2/content/eReader.aspx.
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