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Realigning Finance to Its Original Purpose

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Reengineering Capitalism

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Abstract

Financial considerations always win in society—almost. Yet, finance does at its core only two simple things:(1) It can act as an economic time machine, helping savers transport today’s surplus income into the future, or giving borrowers access to future earnings now, and (2) it can act as a safety net, insuring against floods, fires, or illness. Depending on how these transactions play out, finance determines loss and gain, what is economically viable or not and they serve as basis for management of all economic resources. Ultimately, they determine winners and losers, and because of this, finance has a huge impact on the behavior of people.

All men seek one goal; success and happiness. The only way to achieve true success is to express yourself completely in service to society. First, have a definite, clear, practical ideal – a goal, an objective. Second, have the necessary means to achieve your ends – wisdom, money, materials, and methods. Third, adjust your means to that end.

Aristotle

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Notes

  1. 1.

    According to The Economist (2014f). The slumps that shaped modern finance. The Economist. 411: pp. 47–52.

  2. 2.

    See for example Shields, M. D. and S. M. Young (1989). “A Behavioral Model for Implementing Cost Management Systems.” Journal of Cost Management for the Manufacturing Industry(Winter): pp. 17–27.

  3. 3.

    According to The Economist (2014f). The slumps that shaped modern finance. The Economist. 411: pp. 47–52.

  4. 4.

    In Taleb, N. N. (2007). The Black Swan: The Impact of the Highly Improbable. London, Allen Lane. p. 366.

  5. 5.

    From Jensen, M. C. and W. H. Meckling (1976). “Theory of the Firm: Managing Behavior, Agebcy Costs and Ownership Structure.” Journal of Financial Economics 3(4): pp. 305–360.

  6. 6.

    Quoted in Bill Moyers Journal, September 19, 2008.

  7. 7.

    See Bender, R. and K. Ward (2008). Corporate Financial Strategy. Oxford, Routledge. p. 406.

  8. 8.

    This definition is provided by Office of the Comptroller of Currency, U.S. Department of the Treasury.

  9. 9.

    See Taylor, F. (2010). Mastering Derivatives Markets: A Step-by-Step Guide to the Products, Applications and Risks. London, Financial Times/Prentice Hall. p. 432.

  10. 10.

    How derivatives can both serve for good and for speculation is explained very well by Taylor, F. (2010). Mastering Derivatives Markets: A Step-by-Step Guide to the Products, Applications and Risks. London, Financial Times/Prentice Hall. p. 432.

  11. 11.

    According to Taylor, F. (2010). Mastering Derivatives Markets: A Step-by-Step Guide to the Products, Applications and Risks. London, Financial Times/Prentice Hall. p. 432.

  12. 12.

    See Goodhart, C. A. E. (2008). “The regulatory response to the financial crisis.” Journal of Financial Stability 4(4): pp. 351–358.

  13. 13.

    Source: Bank for International Settlements (BIS).

  14. 14.

    This 80/20 heuristic is provided by Hodgson, B. (2010). Central Clearing and the OTC Market. Mastering Derivatives Markets: A Step-by-Step Guide to the Products, Applications and Risks. F. Taylor. London, Financial Times/Prentice Hall: pp. 239–262.

  15. 15.

    Quoted by The Economist (2014g). Special report on International Banking: Shadow and substance. London, The Economist. p. 16.

  16. 16.

    Source: US Bureau of Economic Analysis.

  17. 17.

    Source: Earth Policy Institute on-line at www.earth-policy.org.

  18. 18.

    See Mukunda, G. (2014). “The Price of Wall Street’s Power.” Harvard Business Review 92(6): pp. 70–78.

  19. 19.

    Quoted by Christensen, C. M. and D. van Bever (2014). “The Capitalist’s Dilemma.” Harvard Business Review 92(6): pp. 60–68.

  20. 20.

    Referred to by Mukunda, G. (2014). “The Price of Wall Street’s Power.” Harvard Business Review 92(6): pp. 70–78.

  21. 21.

    See Mukunda, G. (2014). “The Price of Wall Street’s Power.” Harvard Business Review 92(6): pp. 70–78.

  22. 22.

    According to Taylor, F. (2010). Mastering Derivatives Markets: A Step-by-Step Guide to the Products, Applications and Risks. London, Financial Times/Prentice Hall. p. 432.

  23. 23.

    According to Salomons, E. (2010). Regulation in the Derivatives Market. Mastering Derivatives Markets: A Step-by-Step Guide to the Products, Applications and Risks. F. Taylor. London, Financial Times/Prentice Hall: pp. 361–378.

  24. 24.

    According to Salomons, E. (2010). Regulation in the Derivatives Market. Mastering Derivatives Markets: A Step-by-Step Guide to the Products, Applications and Risks. F. Taylor. London, Financial Times/Prentice Hall: pp. 361–378.

  25. 25.

    See Taleb, N. N. (2007). The Black Swan: The Impact of the Highly Improbable. London, Allen Lane. p. 366.

  26. 26.

    According to Taleb, N. N. (2007). The Black Swan: The Impact of the Highly Improbable. London, Allen Lane. p. 366.

  27. 27.

    See Greenwald, B. C. N., J. Kahn, P. D. Sonkin and M. van Biema (2001). Value Investing: From Graham to Buffet and Beyond. Hoboken, NJ, John Wiley & Sons. p. 300.

  28. 28.

    See Greenwald, B. C. N., J. Kahn, P. D. Sonkin and M. van Biema (2001). Value Investing: From Graham to Buffet and Beyond. Hoboken, NJ, John Wiley & Sons. p. 300.

  29. 29.

    See Greenwald, B. C. N., J. Kahn, P. D. Sonkin and M. van Biema (2001). Value Investing: From Graham to Buffet and Beyond. Hoboken, NJ, John Wiley & Sons. p. 300.

  30. 30.

    According to Pickford, J., Ed. (2001). Financial Times Mastering Risk—Volume 1: Concepts; Your Single-Source Guide to Becoming a Master of Risk. London, Prentice Hall. p. 325.

  31. 31.

    According to Brown, G. W. (2001). Seeking security in a volatile world. Financial Times Mastering Risk—Volume 1: Concepts; Your Single-Source Guide to Becoming a Master of Risk. J. Pickford. London, Prentice Hall: pp. 101–108.

  32. 32.

    See Bernstein, P. L. (2001). The enlightening struggle against uncertainty. Financial Times Mastering Risk—Volume 1: Concepts; Your Single-Source Guide to Becoming a Master of Risk. J. Pickford. London, Prentice Hall: pp. 5–10.

  33. 33.

    See Bernstein, P. L. (2001). The enlightening struggle against uncertainty. Financial Times Mastering Risk—Volume 1: Concepts; Your Single-Source Guide to Becoming a Master of Risk. J. Pickford. London, Prentice Hall: pp. 5–10.

  34. 34.

    See Markowitz, H. (1952). “Portfolio Selection.” Journal of Finance 7(1): pp. 77–91.

  35. 35.

    See Sharpe, W. F. (1966). “Capital asset prices: a theory of market equilibrium under conditions of risk.” Journal of Finance 19(3): pp. 425–442.

  36. 36.

    See Lintner, J. V. (1965). “The valuation of risk assets and the selection of risky investments in stock portfolios and capital budgets.” Review of Economics and Statistics 47(1): pp. 13–37.

  37. 37.

    See Fisher, B. (1972). “Capital market equilibrium with restricted borrowing.” Journal of Business 45(3): pp. 444–455.

  38. 38.

    According to Fama, E. F. and K. R. French (1992). “The cross-section of expected stock returns.” Journal of Finance 47(2): pp. 427–466.

  39. 39.

    See for example Michaud, R. O. (1989). “The Markowitz Optimization Enigma: Is ‘Optimized’ Optimal?” Financial Analysts Journal 45(1): pp. 31–42.

  40. 40.

    See Fama, E. F. and K. R. French (1992). “The cross-section of expected stock returns.” Journal of Finance 47(2): pp. 427–466.

  41. 41.

    See Markowitz, H. (1952). “Portfolio Selection.” Journal of Finance 7(1): pp. 77–91.

  42. 42.

    See Markowitz, H. (1952). “Portfolio Selection.” Journal of Finance 7(1): pp. 77–91.

  43. 43.

    According to Garside, T. and P. Nakada (2000). “Enhancing risk measurement capabilities.” Balance Sheet 8(3): pp. 12–17.

  44. 44.

    According to Garside, T. and P. Nakada (2000). “Enhancing risk measurement capabilities.” Balance Sheet 8(3): pp. 12–17.

  45. 45.

    According to Madden, B. J. (2003). CFROI Valuation: A Total System Approach to Valuing the Firm. Oxford, Butterworth-Heinemann. p. 356.

  46. 46.

    According to many sources in the literature including Madden, B. J. (2003). CFROI Valuation: A Total System Approach to Valuing the Firm. Oxford, Butterworth-Heinemann. p. 356.

  47. 47.

    See Outstanding Investor Digest (1996). Berkshire Hathaway’s Warren Buffett & Charlie Munger “If the Business and the Manager Are Right, You Should Probably Forget the Quote.” XI(3 & 4).

  48. 48.

    See Knight, R. F. and D. J. Pretty (2001). The real benefits of corporate diversification. Financial Times Mastering Risk—Volume 1: Concepts; Your Single-Source Guide to Becoming a Master of Risk. J. Pickford. London, Prentice Hall: pp. 92–96.

  49. 49.

    Landau, J.-P. (2009). Introductory remarks. The macroeconomy and financial systems in normal times and in times of stress. Gouvieux-Chantilly, Bank of France, Deutsche Bundesbank and Bank of International Settlements: pp. http://www.bis.org/review/r090806c.pdf.

  50. 50.

    According to O’Sullivan, A. and S. M. Sheffrin (2006). Economics: Principles in Action. Upper Saddle River, NJ, Pearson Prentice Hall. p. 592.

  51. 51.

    See Estrada, J. (2013). “Stocks, Bonds, Risk, and the Holding Period: An International Perspective.” The Journal of Wealth Management 16(2): pp. 25–44.

  52. 52.

    See Estrada, J. (2013). “Stocks, Bonds, Risk, and the Holding Period: An International Perspective.” The Journal of Wealth Management 16(2): pp. 25–44.

  53. 53.

    See Bernstein, P. L. (1976). “The Time of Your Life.” Journal of Portfolio Management 2(4): pp. 4.

  54. 54.

    See Shen, P. (2005). “How Long Is a Long-Term Investment?” Economic Review(First quarter): pp. 5–32.

  55. 55.

    See Li, B., B. Liu, R. Bianchi and J. J. Su (2012). “Stock Returns and Holding Periods.” JASSA The Finsia Journal of Applied Finance(2): pp. 43–48.

  56. 56.

    See Estrada, J. (2013). “Stocks, Bonds, Risk, and the Holding Period: An International Perspective.” The Journal of Wealth Management 16(2): pp. 25–44.

  57. 57.

    According to data from NYSE and quoted by Mortimer, I. and M. Page (2013). Why Dividends Matter. Investment Research Series. London, Guinness Atkinson Funds. p. 11.

  58. 58.

    See Bernstein, P. L. (1976). “The Time of Your Life.” Journal of Portfolio Management 2(4): pp. 4.

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  61. 61.

    According to Surz, R. J. and M. Price (2000). “The Truths About Diversification by the Numbers.” The Journal of Investing(Winter): pp. 1–3.

  62. 62.

    Conducted by Fisher, L. and J. H. Lorie (1970). “Some Studies of Variability of Returns on Investments in Common Stocks.” Journal of Business 43(2): pp. 99–134.

  63. 63.

    According to Surz, R. J. and M. Price (2000). “The Truths About Diversification by the Numbers.” The Journal of Investing(Winter): pp. 1–3.

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    See Arnott, R. D. (2003). “Editor’s corner: Dividends and the Three Dwarfs.” Financial Analysts Journal 59(2): pp. 4–6.

  65. 65.

    See Dimson, E., P. Marsh and M. Staunton (2008). Chapter 11—The Worldwide Equity Premium: A Smaller Puzzle. Handbook of the Equity Risk Premium. R. Mehra. Amsterdam, Elsevier: pp. 467–514.

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    See Mortimer, I. and M. Page (2013). Why Dividends Matter. Investment Research Series. London, Guinness Atkinson Funds. p. 11.

  67. 67.

    See Langer, E. J. (1975). “The Illusion of Control.” Journal of Personality and Social Psychology 32(2): pp. 311–328.

  68. 68.

    See Ejova, A., D. J. Navarro and P. H. Delfabbro (2013). “Success-slop effects on the illusion of control and remembered success-frequency.” Judgment and Decision Making 8(4): pp. 498–511.

  69. 69.

    See De Bondt, W. F. M. and R. H. Thaler (1985a). “Does the Stock Market Overreact?” Journal of Finance 40(3): pp. 793–808.

  70. 70.

    See Fama, E. F. (1998). “Market efficiency, long-term returns, and behavioral finance.” Journal of Financial Economics 49(3): pp. 283–306.

  71. 71.

    See Thaler, R. H. (1999). “The End of Behavioral Finance.” Financial Analysts Journal 55(6): pp. 12–17.

  72. 72.

    See Shiller, R. J. (1981). “Do Stock Prices Move Too Much to be Justified by Subsequent Changes in Dividends.” The American Economic Review 71(3): pp. 421–436.

  73. 73.

    This is shown by Modigliani, F. and M. H. Miller (1958). “The Cost of Capital, Corporate Finance, and the Theory of Investment.” The American Economic Review 48(3): pp. 655–669.

  74. 74.

    See Mehra, R. and E. C. Prescott (1985). “The Equity Premium: A Puzzle.” Journal of Monetary Economics 15(2): pp. 145–161.

  75. 75.

    See Benartzi, S. and R. H. Thaler (1995). “Myopic Loss Aversion and the Equity Premium Puzzle.” Quarterly Journal of Economics 110(1): pp. 73–92.

  76. 76.

    See Fama, E. F. (1991). “Efficient Capital Markets II.” Journal of Finance 46(5): pp. 1575–1617.

  77. 77.

    See Lakonishok, J., A. Shleifer and R. W. Vishny (1994). “Contrarian Investment, Extrapolation, and Risk.” Journal of Finance 49(5): pp. 1541–1578.

  78. 78.

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  79. 79.

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  80. 80.

    According to Llorente, G., R. Michaely, G. Saar and J. Wang (2002). “Dynamic Volume-Return Relation of Individual Stocks.” The Review of Financial Studies 15(4): pp. 1005–1047.

  81. 81.

    This finding is also supported by others including Stickel, S. E. and R. E. Verrecchia (1994). “Evidence that Trading Volume Sustains Stock Price Changes.” Financial Analyst Journal 50(6): pp. 57–67.

  82. 82.

    See Mei, J., J. A. Scheinkman and W. Xiong (2009). “Speculative Trading and Stock Prices: Evidence from Chinese A-B Share Premia.” Annals of Economics and Finance 10(2): pp. 225–255.

  83. 83.

    See Christensen, C. M. and D. van Bever (2014). “The Capitalist’s Dilemma.” Harvard Business Review 92(6): pp. 60–68.

  84. 84.

    According to Christensen, C. M. and D. van Bever (2014). “The Capitalist’s Dilemma.” Harvard Business Review 92(6): pp. 60–68.

  85. 85.

    This point is highlighted also by Dimson, E., P. Marsh and M. Staunton (2000). “Risk and Return in the 20th and 21st Centuries.” Business Strategy Review 11(2): pp. 1–18.

  86. 86.

    See Lazonick, W. (2014). “Profits without prosperity.” Harvard Business Review 92(9): pp. 46–55.

  87. 87.

    See Graham, B. and D. L. Dodd (1951). Security Analysis: Principles and Technique. London, McGraw-Hill Book Company. p. 770.

  88. 88.

    According to Graham, B. (2005). The Intelligent Investor. New York, HarperCollins Publishers. p. 269.

  89. 89.

    According to Hagstrom, R. G. (2005) . The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  90. 90.

    See Lakonishok, J., A. Shleifer and R. W. Vishny (1994). “Contrarian Investment, Extrapolation, and Risk.” Journal of Finance 49(5): pp. 1541–1578.

  91. 91.

    I have taken the liberty to somewhat explicate some of the questions, and see for example Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  92. 92.

    According to Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  93. 93.

    According to Lenzner, R. (1993). “Warren Buffet’s Idea of Heaven: ‘I Don’t Have to Work With People I Don’t Like’.” Forbes(October 18): pp. 43.

  94. 94.

    See Berkshire Hathaway Annual Report 1990, p.17.

  95. 95.

    See Davis, L. J. (1990). “Buffett Takes Stock.” New York Times Magazine(April 1): pp. 61.

  96. 96.

    According to Peter S. Lynch in his foreword to Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  97. 97.

    See Graham, B. and D. L. Dodd (1951). Security Analysis: Principles and Technique. London, McGraw-Hill Book Company. p. 770.

  98. 98.

    According to http://www.valuewalk.com/philip-fisher-resource-page/.

  99. 99.

    According to Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  100. 100.

    For details concerning the 15 points, see Fisher, P. A. (2003). Common Stocks and Uncommon Profits and Other Writings. Hoboken, NJ, John Wiley & Sons. p. 292.

  101. 101.

    According to Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  102. 102.

    See Graham, B. (2005). The Intelligent Investor. New York, HarperCollins Publishers. p. 269.

  103. 103.

    Quoted by Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  104. 104.

    See Fisher, P. A. (2003). Common Stocks and Uncommon Profits and Other Writings. Hoboken, NJ, John Wiley & Sons. p. 292.

  105. 105.

    According to Peter S. Lynch in his foreword to Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  106. 106.

    See Hagstrom, R. G. (2005). The Warren Buffett Way. Hoboken, NJ, John Wiley & Sons. p. 245.

  107. 107.

    In Graham, B. (2005). The Intelligent Investor. New York, HarperCollins Publishers. p. 269.

  108. 108.

    Offered by several academics including:

    • De Bondt, W. F. M. and R. H. Thaler (1985a). “Does the Stock Market Overreact?” Journal of Finance 40(3): pp. 793–808.

    • Haugen, R. A. (1998). The New Finance: Case Against Efficient Markets. Upper Saddle River, NJ, Prentice Hall. p. 160.

  109. 109.

    This argument is most forcefully argued by Fama, E. F. and K. R. French (1992). “The cross-section of expected stock returns.” Journal of Finance 47(2): pp. 427–466.

  110. 110.

    See Lakonishok, J., A. Shleifer and R. W. Vishny (1994). “Contrarian Investment, Extrapolation, and Risk.” Journal of Finance 49(5): pp. 1541–1578.

  111. 111.

    See for example Fama, E. F. and K. R. French (1992). “The cross-section of expected stock returns.” Journal of Finance 47(2): pp. 427–466.

  112. 112.

    According to Mizrahi, C. S. (2008). Getting Started in Value Investing. Hoboken, NJ, John Wiley & Sons. p. 190.

  113. 113.

    See for example Lakonishok, J., A. Shleifer and R. W. Vishny (1994). “Contrarian Investment, Extrapolation, and Risk.” Journal of Finance 49(5): pp. 1541–1578.

  114. 114.

    See for example:

    • De Long, J. B., A. Schleifer, L. H. Summers and R. J. Waldman (1990). “Noise trader risk in financial markets.” Journal of Political Economy 98(4): pp. 703–738.

    • Schleifer, A. and R. W. Vishny (1990). “The New Theory of the Firm: Equilibrium Short Horizons of Investors and Firms.” The American Economic Review: Second Annual Meeting of the American Economic Association 80(2): pp. 148–153.

  115. 115.

    See for example Lakonishok, J., A. Shleifer and R. W. Vishny (1994). “Contrarian Investment, Extrapolation, and Risk.” Journal of Finance 49(5): pp. 1541–1578.

  116. 116.

    See Mizrahi, C. S. (2008). Getting Started in Value Investing. Hoboken, NJ, John Wiley & Sons. p. 190.

  117. 117.

    See Greenwald, B. C. N., J. Kahn, P. D. Sonkin and M. van Biema (2001). Value Investing: From Graham to Buffet and Beyond. Hoboken, NJ, John Wiley & Sons. p. 300.

  118. 118.

    See Greenwald, B. C. N., J. Kahn, P. D. Sonkin and M. van Biema (2001). Value Investing: From Graham to Buffet and Beyond. Hoboken, NJ, John Wiley & Sons. p. 300.

  119. 119.

    See Graham, B. and D. L. Dodd (1951). Security Analysis: Principles and Technique. London, McGraw-Hill Book Company. p. 770.

  120. 120.

    See Madden, B. J. (2003). CFROI Valuation: A Total System Approach to Valuing the Firm. Oxford, Butterworth-Heinemann. p. 356.

  121. 121.

    See Atherton, A., J. Lewis and R. Plant (2007). Causes of Short-termism in the Finance Sector. Sydney, University of Technology, Institute for Sustainable Futures, Total Environment Center. p. 17.

  122. 122.

    See CFA Centre for Financial Market Integrity/Business Roundtable Institute for Corporate Ethics (2006). Breaking the Short-Term Cycle: Discussion and Recommendations on How Corporate Leaders, Asset Managers, Investors, and Analysts Can Refocus on Long-Term Value. Charlottesville, VA, CFA Institute. p. 19.

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  124. 124.

    See CFA Centre for Financial Market Integrity/Business Roundtable Institute for Corporate Ethics (2006). Breaking the Short-Term Cycle: Discussion and Recommendations on How Corporate Leaders, Asset Managers, Investors, and Analysts Can Refocus on Long-Term Value. Charlottesville, VA, CFA Institute. p. 19.

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  126. 126.

    See Useem, J. (2002). Tyrants, statesmen, and destroyers. FORTUNE. 146: pp. 50–55.

  127. 127.

    See Oman, C. (2001). Corporate Governance and National Development. Paris, OECD Development Centre. p. 47.

  128. 128.

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    According to Kahneman, D. and A. Tversky (1982). Intuitive Prediction: Biases and Corrective Procedures. Judgment Under Uncertainty: Heuristics and Biases. D. Kahneman, P. Slovic and A. Tversky. London, Cambridge University Press: pp. 414–421.

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    See Schleifer, A. and R. W. Vishny (1990). “The New Theory of the Firm: Equilibrium Short Horizons of Investors and Firms.” The American Economic Review: Second Annual Meeting of the American Economic Association 80(2): pp. 148–153.

  131. 131.

    See Stiglitz, J. E. and A. Weiss (1981). “Credit Rationing in Markets with Imperfect Information.” American Economic Review 71(3): pp. 393–410.

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    According to Schleifer, A. and R. W. Vishny (1990). “The New Theory of the Firm: Equilibrium Short Horizons of Investors and Firms.” The American Economic Review: Second Annual Meeting of the American Economic Association 80(2): pp. 148–153.

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    See CFA Centre for Financial Market Integrity/Business Roundtable Institute for Corporate Ethics (2006). Breaking the Short-Term Cycle: Discussion and Recommendations on How Corporate Leaders, Asset Managers, Investors, and Analysts Can Refocus on Long-Term Value. Charlottesville, VA, CFA Institute. p. 19.

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    According to Schleifer, A. and R. W. Vishny (1990). “The New Theory of the Firm: Equilibrium Short Horizons of Investors and Firms.” The American Economic Review: Second Annual Meeting of the American Economic Association 80(2): pp. 148–153.

  135. 135.

    See Government Asset Management Committee (2001). Life Cycle Costing Guideline. Sydney, New South Wales Government Asset Management Committee. p. 15.

  136. 136.

    According to US Green Building Council (2005). LEED ® for New Construction & Major Renovations. Washington DC, U.S. Green Building Council. p. 78.

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    According to Northbridge Environmental Management Consultants (2003). Analyzing the Cost of Obtaining LEED Certification. Arlington, VA, The American Chemistry Council. p. 13.

  138. 138.

    An approach for how this can be achieved is presented in Emblemsvåg, J. (2003). Life-Cycle Costing: Using Activity-Based Costing and Monte Carlo Methods to Manage Future Costs and Risks. Hoboken, NJ, John Wiley & Sons. p. 320.

  139. 139.

    According to see Bradbrook, A. J. (1994). “Environmental Aspects of Energy Law—The Role of the Law.” Renewable Energy 5, part III(5–8): pp. 1278–1292.

  140. 140.

    See Cartea, A. and J. Penalva (2012). “Where is the Value in High Frequency Trading?” Quarterly Journal of Finance 2(3): pp. doi:10.1142/S2010139212500140.

  141. 141.

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  142. 142.

    See Duhigg, C. (2009). Stock Traders Find Speed Pays, in Milliseconds. The New York Times. New York: p. 24 July.

  143. 143.

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    Jan Emblemsvåg

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Emblemsvåg, J. (2016). Realigning Finance to Its Original Purpose. In: Reengineering Capitalism. Springer, Cham. https://doi.org/10.1007/978-3-319-19689-3_4

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