Questions from Financial Markets

Q: Should an accounting firm be prohibited from offering both auditing services and

Should an accounting firm be prohibited from offering both auditing services and consulting services to the same client? Explain your answer. If an accounting firm offered only one service, could ther...

Q: Write a short essay explaining how financial futures might reduce systemic risk

Write a short essay explaining how financial futures might reduce systemic risk, and how financial futures might increase systemic risk within financial markets.

Q: Explain why participants in the stock market monitor the VIX index.

Explain why participants in the stock market monitor the VIX index. What does a decline in VIX imply about a change in expected volatility by market participants?

Q: Explain how foreign stock exchanges have reduced transactions costs.

Explain how foreign stock exchanges have reduced transactions costs.

Q: Your friend just told you about a penny stock that he purchased

Your friend just told you about a penny stock that he purchased, which increased in price from $0.10 to $0.50 per share. You start investigating penny stocks, and after conducting a large amount of re...

Q: Why did the SEC impose a temporary ban on short sales of

Why did the SEC impose a temporary ban on short sales of specific stocks in 2008? Do you think a ban on short selling is effective?

Q: What are dark pools? How can they help investors accumulate shares

What are dark pools? How can they help investors accumulate shares without other investors knowing about the trades? Why are dark pools criticized by public stock exchanges? Explain the strategy used...

Q: Describe inside information as applied to the trading of stocks. Why

Describe inside information as applied to the trading of stocks. Why is it illegal to trade based on inside information? Describe the evidence that suggests some investors use inside information.

Q: Explain how the Galleon Fund case led to stronger enforcement against insider

Explain how the Galleon Fund case led to stronger enforcement against insider trading.

Q: Explain the strategy of high frequency trading firms. Describe the typical

Explain the strategy of high frequency trading firms. Describe the typical time horizon of an investment that is relevant to high frequency traders, and how that varies from other institutional invest...