Att klassas som elit - finansmarknadens inbäddning i samhället

Peter Norberg ()
Additional contact information
Peter Norberg: Dept. of Business Administration, Stockholm School of Economics, Postal: Stockholm School of Economics, P.O. Box 6501, SE-113 83 Stockholm, Sweden

No 2004:6, SSE/EFI Working Paper Series in Business Administration from Stockholm School of Economics

Abstract: The discreet charm of the stock broker: the social embeddedness of financial markets

Use of technology gives rise to impersonal relations in financial markets. Personal interaction is replaced by the cold rationality of algorithms. While working in financial markets, employees aim at being rational maximizers. This competition is balanced with a co-operative dimension. The market depends on, and is thus embedded in non-contractual elements such as morality and social capital. Custom creates the basis upon which exchange may take place and facilitates the organisation of economic activities. Trust enables us to engage in economic action. With a similar background, education, and by means of being part of one and the same culture, investors have similar values and beliefs. Actors use norms and habits that reduce the complexity of their work. Resources embedded in social relations and networks are accessed for utilitarian purposes.

Financial markets are disembedded while local contexts are replaced by a world-wide scope. Financial capitalism nonetheless becomes increasingly integrated in society, as eighty percent of the Swedish population own shares either directly or through funds. Media takes an increased interest for securities markets. The exclusivity of financial markets decreases.

Keywords: financial market; brokers; embeddedness; networks (search for similar items in EconPapers)
Pages: 21 pages
Date: 2004-06-01, Revised 2005-01-19
References: Add references at CitEc
Citations:

Downloads: (external link)
http://swoba.hhs.se/hastba/papers/hastba2004_006.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhb:hastba:2004_006

Access Statistics for this paper

More papers in SSE/EFI Working Paper Series in Business Administration from Stockholm School of Economics The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, SE 113 83 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Helena Lundin ().