Questions from Financial Markets

Q: During the Credit Crisis. Explain why mortgage originators have been criticized

During the Credit Crisis. Explain why mortgage originators have been criticized for their behavior during the credit crisis. Should other participants in the mortgage securitization process have recog...

Q: Explain why the stock price of a firm may rise when the

Explain why the stock price of a firm may rise when the firm announces that it is repurchasing its shares.

Q: Explain how ADRs enable U.S. investors to become part

Explain how ADRs enable U.S. investors to become part owners of foreign companies.

Q: Explain why stocks traded on the NYSE generally exhibit less risk than

Explain why stocks traded on the NYSE generally exhibit less risk than stocks that are traded on other exchanges.

Q: Are organized stock exchanges used to place newly issued stock? Explain

Are organized stock exchanges used to place newly issued stock? Explain.

Q: Describe the process of bookbuilding. Why is bookbuilding sometimes criticized as

Describe the process of bookbuilding. Why is bookbuilding sometimes criticized as a means of setting the offer price?

Q: What is the meaning of an initial return for an IPO?

What is the meaning of an initial return for an IPO?

Q: Why can expectations of an acquisition affect the value of the target’s

Why can expectations of an acquisition affect the value of the target’s stock?

Q: What are the risks of investing in stocks in emerging markets?

What are the risks of investing in stocks in emerging markets?

Q: Estimate the real interest rate over the last year. If financial

Estimate the real interest rate over the last year. If financial market participants overestimate inflation in a particular period, will real interest rates be relatively high or low? Explain.