Self-Interest

  

Categories: Financial Theory

Narcissus. Kardashians. Pretty much every politician. "It's all about me. I'm only interested in me."

But maybe it's not all bad. Self-interest is predictable. It's stable. It's kind of certain. Individuals will act in oaccordance with their own best self-interest. We can trust people to be greedy, fearful, selfish, and to confirm our basest elements in our human journeys. And bet on it.

Related or Semi-related Video

Finance: What does it mean to have fiduc...51 Views

00:00

Finance a la Shmoop! What does it mean to have fiduciary obligation? Alright well

00:09

fiduciary refers to the responsible person, who has oversight, above a given

00:15

financial transaction, or process. That is, it is the fiduciary obligation, of the

00:21

head of a corporation's Audit Committee, to be certain that the

00:25

accounting process is handled fairly, objectively, inclusively and thoroughly [boss overseeing worker]

00:29

and there are a few other ly's in there, but well you get the gist. Doesn't it

00:34

seem strange, that some companies just seem to get into the same kind of

00:39

trouble again and again. Remember the BP oil spill, well it wasn't the first time

00:45

they'd had, an accident. You know, if you can call that spill only an accident.

00:49

What kind of oversight did they have? Any? Well some companies just have a [man carrying oil barrel

00:54

corporate culture that's run by the notion, that well, whatever isn't caught

00:58

as a crime, is legal. Lots of Wall Street stock brokerages came and went this

01:03

way. Yah, remember the Wolf of Wall Street? Kind of like that. Well what is

01:06

the obligation of a responsible party when faced with ethical dilemmas? Where

01:11

does the obligation start and stop? Should fiduciaries be held to a higher

01:15

personal standard than normal people? Yah, kind of the, you know, Harvey

01:20

Weinstein effect there. Yes, No, maybe, alright. Right, all three times. [question ABCD chart]

01:24

It's definitely yes, no, or maybe.

Up Next

Finance: What are Prudent Investor Rule Standards, the Know Your Client Rule and Unsuitable Recommendations?
7 Views

What are Prudent Investor Rule Standards, the Know Your Client Rule, and unsuitable recommendations?

Find other enlightening terms in Shmoop Finance Genius Bar(f)