Why Are These Considered Appropriate Safeguards?
There are three major decisions that financial managers have to take on a regular basis. One of them is the investments decision, the financial manager has to decide where to best invest the funds of the company. It is beneficial for the company to invest their funds to keep growing. It is important to keep in mind that financial managers have to analyze the rate of return, the risk involved, the investment criteria, the long term growth and the cash flow analysis.
Another decision that a financial manager make is decising from where to raise the money for the company, either from the owner’s fund (share …show more content…
Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards?
The Gramm-Leach Bliley Act, which refers to all financial institutions to explain to theis clients all information related to their accounts and keep private information of their customers, the financial institution is also forced to give out customer’s privacy notices to explain their information-sharing practices.
The Federal trade comission’s (FTC) privacy rule is another federal safeguard, which forces the financial institutions to keep privacy on the customer’s information and give a privacy notice. The difference between this one and the GLB act is that this one is an independent agency of the United States government and not only protects the financial industry, but also the advertising and the marketing industries.
The Glass Steagal Act, this act separates investments and commercial banking activities.
The Sarbanes-Oxley Act(SOX), This reform was approved to help regulate the financial reporting and audit quality and it needs to be performed by an independent auditor or …show more content…
Also NYSE is an auction market and Nasdaq is a market market, in the other hand, they both have traffic controllers. Nasdaq is a high tech market , the stocks are known to be growing, where in NYSE, their stocks are more stable. Nasdaq is a public company and NYSE is a private company. In my opinion, I would prefer to invest in Nasdaq, because I highly believe that the telecommunications industry is raising so much and has really good projections of keep growing. Looking at Nasdaq projections and old closing stock prices also makes me choose Nasdaq over NYSE or any other large