Questions from Financial Markets

Q: Explain how the Financial Reform Act of 2010 attempted to prevent biased

Explain how the Financial Reform Act of 2010 attempted to prevent biased ratings of mortgage-backed securities by credit rating agencies.

Q: The credit crisis that occurred in 2008-2009 could also be

The credit crisis that occurred in 2008-2009 could also be called an equity crisis due to systemic risk. Write a short essay to explain the impact of the credit markets on the equity markets during th...

Q: Describe spinning and laddering in the IPO market. How do you

Describe spinning and laddering in the IPO market. How do you think these actions influence the price of a newly issued stock? Who is adversely affected as a result of these actions?

Q: How do you think accounting irregularities affect the pricing of corporate stock

How do you think accounting irregularities affect the pricing of corporate stock in general? From an investor’s viewpoint, how do you think the information used to price stocks changes in response to...

Q: Briefly describe the provisions of the Sarbanes-Oxley Act. Discuss

Briefly describe the provisions of the Sarbanes-Oxley Act. Discuss how this act affects the monitoring performed by shareholders.

Q: Denton Co. plans to engage in an IPO and will issue

Denton Co. plans to engage in an IPO and will issue 4 million shares of stock. It is hoping to sell the shares for an offer price of $14. It hires a securities firm, which suggests that the offer pric...

Q: Explain how shareholder protection varies among countries. Explain how enforcement of

Explain how shareholder protection varies among countries. Explain how enforcement of securities laws varies among countries. Why do these characteristics affect the valuations of stocks?

Q: Describe international ETFs and explain how ETFs are exposed to exchange rate

Describe international ETFs and explain how ETFs are exposed to exchange rate risk. How do you think an investor decides whether to purchase an ETF representing Japan, Spain, or some other country?

Q: Explain how venture capital (VC) funds finance private businesses,

Explain how venture capital (VC) funds finance private businesses, as well as how they exit from their participation in a firm.

Q: Explain the dilemma of stock analysts who work for securities firms and

Explain the dilemma of stock analysts who work for securities firms and assign ratings to large corporations. Why might they prefer not to assign low ratings to weak but large corporations?