Stock market bubble

With the highly used social networking and instant messaging via mobile devices, it would seem like communication is a breeze nowadays. On the contrary, you are not fully connected with other people until you can physically communicate with them. Likewise, many people choose to filter what they put out in the social media, they will most likely hide that they had a bad experience because people have a tendency to share only positive views for their own self-image. Relationships between people…

right to call special meetings, and “anti-takeover” provisions to protect the interests of their stake holders. Director independence guidelines have been adopted to determine that individual directors are independent under the standards of the NASDAQ market. This annual determination assures the quality of the board’s oversight and reduces the possibility of damaging conflicts in interest. Scientific Games has also adopted corporate governance guildlines that outline the structure, roles, and…

Ethical Situation Bernie Madoff is a prime example of an ethical situation involving a salesperson with a real world company. This man founded a Wall Street firm, in his name, and was the chairman of Bernard L. Madoff Investment Securities LLC. His employees surrounding his business included family members such as a brother, niece, daughter and sons. The firm was a well-known marketing business and he was an individual who was trusted among his peer. At the start of his…

“The NPV Profile: A creative way at looking at the NPV” by Frank Lefley and Malcolm Morgan explores the battle between using NPV (net present value) and IRR (internal rate return). NPV is the correct method of investment appraisal, but IRR is still the preferred method. Although this method is preferred, the article simply states that no single investment technique will give all the answers to investment situations. There are some weaknesses to NVP which include; failing to take into account the…

raised at least an extra $5.143 million selling 195,000 additional shares. Eddie and his father pocketed an extra $3.2 million in stock sales” (S. Antar, “Crazy Eddie Fraud”). Usually a cut off test would be done but the lack of time caused this test to be put on the back burners. This over sight caused millions to be falsely earned, it is messing with the stock market. It’s unbelievable how a small series of events snowballs into such a mess.…

The client, Barae Pharmaceuticals had won a $2 million judgement against Bara Pharmaceuticals for the misuse of Barae’s name. Bara Pharmaceuticals had used Barae’s name inappropriately in the generic-label over-the-counter market. Bara, the defendant in the case, had closed down and filed for Chapter 7 bankruptcy when the judgement was entered. With the judgement entered and debt being incurred, the CEO and CFO of Bara had left the country and returned to South America. Additionally, the 125…

determine if the liquidated damage clause caused a penalty or not on the breacher 5.2 Expectation • The goal of the expectation damage would be to put MJC where they would have been had NSH performed. To do that you must take the difference of the market price at the time when the buyer learned of the breach and contract price (8,000*12= 96,000) together with any incidental and consequential damages, but less expenses saved in consequence of the seller’s breach. (§2-713) 5.3 Specific…

OTPPB’s current assets allocation. By 2000, 60 per cent and 18 per cent of the plan’s assets were invested in equities such as stocks in public and private corporates and equity-return derivative contracts, and fixed-income securities, largely government bonds and debentures, respectively. Inflation not only tended to lead to short-term volatility of returns in equity market, but also…

What are the major consequences of Wall Street Crash 1929? The last century witnessed a tragedy in global stock markets, initiated by the notorious Wall Street Crash 1929. This caused a big slump in the market values of shares across the world. This triggered off the Great Depression, and many other consequences. According to Frederick Lewis Allen’s Only Yesterday (1931), “The rich man's chauffeur drove with his ears laid back to catch the news of an impending move in Bethlehem Steel; he held…

Anderson, Fornell, and Lehmann (1994) say that companies that strive for high customer satisfaction are more likely to receive larger economic returns. They also know that these economic returns are not at once recognized. Matzler et al., (1996) argue that customer satisfaction act as an indicator of future business opportunities, where a satisfied customer is loyal to the company, which implies a stable future cash-flow. This is strengthened by Anderson, Fornell, and Lehmann (1994) who…