Accounting

There has been a lot of efforts made by the European Union so that there can be improvement in the financial market. To achieve this, they have seen it necessary to have transparency so that the investors can have the knowledge which is necessary while changing hands of financial assets. One professor from the school of Economics of Solvay Brussels believes that transparency is never there in the business field. He believes that the information that is released when transparency is demanded is just a small part of the whole information. This is the reason why the European Union is in need of making some new laws that will require organizations to give out all the information. (Fidler, 2010)

This is the only way that there will be healthy competition. The European Union is starting to have some effect such as the case that is happening in the LSE where the profit margin have fallen from 78 to 64 and this is a clear indication of growth in new competition. The European law however clearly understands that the price transparency is not all the time in the interest of the public. It is on this note that some economists argue that market makers should not at all be forced to indicate the price in the market earlier. (Fidler, 2010)
This article clearly demostrates the principles of full disclosure requirement put in practice. Among the main requirement of this principle is that the organisation provide information that is sufficient to the user so that he or she can make a sound decision. this article can be said to follow these requirements as we can find more information about the organization in the body of the article. Even though disclosure is not suitable for proper accounting, it can be said to work well in most cases as it ensures that there is transparency. This is the case that happens in this article. Through full disclosure, there  it a growth in competition in the stock exchange company.

In conclusion, even though there seem to be some exceptions which happen to be very difficult to distinguish, there is a need for transparency in the market. This is the only way that there will be healthy competition. In addition, it is the right of all the key players in the market to have access to all the information that they may need concerning the business. Through transparency, it is possible for the growth of competition in the market. A good example is this case of the LSE reduction in profit margin as a result of growth in competition. After all, this is the only way to avoid exploitation which may result from lack of transparency. However, it is important to say that there are some other key factors in the market other than transparency and therefore transparency is just but one of the key facts that is necessary for a smooth market.