Questions from Financial Markets

Q: Businesses valued at less than $50 million or so rarely go

Businesses valued at less than $50 million or so rarely go public. Explain the limitations to such businesses if they did go public.

Q: Explain the incentive for private equity funds to invest in a firm

Explain the incentive for private equity funds to invest in a firm and improve its operations.

Q: Some critics argue that insider trading should not be regulated, because

Some critics argue that insider trading should not be regulated, because it allows market prices to more quickly reflect the inside information. Write a short essay that supports or refutes this opini...

Q: Explain why some public firms decided to go private in response to

Explain why some public firms decided to go private in response to the passage of the Sarbanes-Oxley (SOX) Act.

Q: Describe the dilemma of securities firms that served as underwriters for Facebook’s

Describe the dilemma of securities firms that served as underwriters for Facebook’s IPOs, when attempting to satisfy Facebook and the institutional investors that invested in Facebook’s stock. Do you...

Q: What are some possible disadvantages to investors who invest in stocks listed

What are some possible disadvantages to investors who invest in stocks listed on a private stock market?

Q: Explain why private equity funds use a very high degree of financial

Explain why private equity funds use a very high degree of financial leverage, and how this affects their risk and potential return on investment.

Q: Explain how underwriters use the overallotment option in IPOs.

Explain how underwriters use the overallotment option in IPOs.

Q: Describe the role of the designated market maker on the New York

Describe the role of the designated market maker on the New York Stock Exchange.

Q: Describe the value-at-risk method for measuring risk.

Describe the value-at-risk method for measuring risk.