After some large companies were caught lying on their profit reports. in the 1980s, the tightened it's regulation of the Stock Market to win back the public's confidence in investing.
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- 2 D )When financial markets are semi-strong form efficient, then: Traders can earn exceptional profits using publicly available information. Stock analysts have a trading advantage because of their access to vast amounts of public information. Company insiders can profit based on the inside information. Individuals can identify mispriced stocks using publicly available informationWhich of the following is an example of diversifiable risk? a) Interest rates rising b) A stock market crash c) A company's CEO being arrested for fraud d) A terrorist event like 9/11Empirical research on payout patterns in recent years indicates that Group of answer choices since 2000, firms are paying higher dividends and executing fewer stock repurchases after the Tech crash in March 2000, investors began to demand more dividends and firms obliged fewer firms are paying dividends since the Tech crash in March 2000 since 2000, firms are paying lower dividends and executing more stock repurchases
- Please explain why "Subprime loars played a big part in the stock market crisis between 2007-2009 why did it happen? what was the solution? please write any important and useful website, article and reference related this topic. Thanks in advanceIn the 2008 global financial crisis many banks faced both a liquidity shock and a solvency shock. Discuss the main causes of each of these shocks and explain how regulators and governments responded to the illiquidity/insolvency faced by banks.In the year 2000, the Justice department announced that it was filing a case against Microsoft for violation of antitrust laws, specifically – tying contracts.How seriously do markets take antitrust allegations? What was Microsoft stock price between the beginning of the year 2000 and the end of 2001?
- Stock repurchases occur when a company buys its outstanding stock which is often referred to as treasury stock and is reported as a negative value on the company’s balance sheet. In a share repurchase, firms use excess cash to buy shares back from investors. These shares are to be held in the corporate treasury and resold if the company needs money. There are several approaches to conducting share repurchases. Consider the following situation: The firm announces its intention to buy shares of its own stock, like an ordinary investor, and proceeds to do so. What method is described in the preceding situation? Auction Tender offer Open-market transaction Direct negotiation In a taxless world with no brokerage costs, repurchases and dividends have the same effect on shareholder wealth. In the real world, however, repurchases provide more preferable tax treatment than dividends to ordinary investors. Does this mean that firms should always use…Which of the following statements about payout policy is FALSE? a. Share repurchases concentrate ownership in the hands of the remaining shareholders, making their shares worth more than they were before the repurchase. b. Firms should generally pay out no more than their free cash flow to equity, unless they are in the process of paying out a large cash balance. c. Dividends typically increase at a slower rate than earnings. d. Firms today return more cash to shareholders through repurchases than through dividends. e. Dividends are lower for firms that have higher growth rates.some executive contend that they need to adopt a short-term orientation given the average holding period for stocks in professionally managed funds nowadays has dropped to less than one year. Thus, there is no need to consider the interest of long-term shareholders since there are none. comment on this reasoning.
- What is a financial market? What is the role of a financial market? 3-2 What would happen to the standard of living in the United States if people lost faith in our financial markets? Why? 3-3 How does a cost-efficient capital market help to reduce the prices of goods and services? 3-4 The SEC attempts to protect investors who are purchasing newly issued securities by requiring issuers to provide relevant financial information to prospective investors. The SEC does not provide an opinion about the real value of the securities. Hence, an unwise investor might pay too much for some stocks and consequently lose heavily. Do you think the SEC should, as a part of every new stock or bond offering, render an opinion to investors on the proper value of the securities being offered? Explain.In recent years, globalization of business and factors such as technological disruption, tax reform, trade policies, and changing demographics in the workforce cause uncertainty and volatility in stock and bond markets. Why might it be important for you to consider current economic and other events as part of planning an audit? (Select all that apply.) Question content area bottom Part 1 A. Profitability, internal controls, and incentives and opportunities to misreport can all change rapidly in the current environment, making it imperative that the auditor understand these factors in addition to the client's industry and operating environment. To develop effective audit plans, auditors must have the expertise to assess external environment risks. B. Volatility in stock and bond markets can create uncertainty about the future profitability of certain industries and/or specific companies. This could ultimately affect the entity's ability to…Explain why the following statement is wrong (1 paragraph maximum): "The main reason why some companies prefer to return cash to shareholders through stock repurchases, rather than dividends, is because repurchases reduce the number of share outstanding and thus tend to increase the stock price."