Alexandra Corredor P. MGM 2301 Prof. Gwendolyn Wilson Assignment #1: Chapter 3 Understanding the Chapter: What Do I know? 1. How would you explain the difference between internal and external stakeholders? A.- Internal and external stakeholders are two groups of entities that follow a path to achieve their own objective, being that, the main differences between them. However, the responsibility for the achievement and the incentives’ payer are other characteristics they differ.…
On September 11th, 2001, The United States was attacked by what president Bush stated was “A terrorist act”. This ultimately set the stage for conspiracy theorists to begin their thoughts on what they believed “really” happened. There are several theories regarding the September 11th attacks saying that these attacks were not brought on by Al- Qaeda. But, by factions within the United States, the main ones caused the most question. A few of them being that inside traders were aware of the…
pennies. Some consider it as any other stock trading off of the major market exchanges. The typical penny stock is of a very small company which has highly illiquid and speculative shares. The company will also generally be subject to limited listing requirements along with fewer filing and regulatory standards which will not reflect the real financial position of the company. Penny stocks may go up or down very quickly. It is very risky when trading How To…
the first chairman of the SEC. Gensler was a one-man army who singlehandedly fought tooth and nail against the banking lobby. He also employed some of the corporate lobbyists’ sneaky tricks to force a significant portion of the derivatives market trading to be conducted through open exchanges, just like the stock or commodities…
Deposit Insurance Corporation. Brokers would lie and deceive to clients about the stock market, and then do inside trading together. The Securities and Exchange Commission set up agencies to monitor and ensure that the brokers are telling the truth. They also made it hard to commit fraud and or insider trading with other brokers. This act was a failure, because fraud, insider trading and lying still took…
principle that governs over a person or group behavior. Sister Doris was an individual who was acting in the interest of others rather than self-interest can be described as ethical, whereas other would not. The individual that would not like in Trading Places, Ophelia who at varies times showed ethical and unethical behavior. In this essay, I will relate the choice of conduct, ethical behavior and obligation of moral principle, Sister Doris undeniably showed the right…
In the summer of 2001, Vice President of Corporate Development, Sherron Watkins, alerts the executives to some accounting irregularities. She directed the higher-ups to the fact that the books and records for Enron were inflated. Company officials ignore Sherron’s warning. In the trials, Watkins duly noted that she “… fully expected Mr. Lay to conduct a thorough into my concerns.” Sherron became one of the important witnesses for the government but not the only one. In August of 2001, the…
Numerous laws were broken in the Enron scandal. The mail and wire fraud statutes of U.S. law criminalize the use of wires the enable a scheme to defraud or to obtain money by fraudulent means (Seitzinger, Morris, & Jickling, 2002). The honest-service statue, the law Skilling alleged broke that was then overturned, defines the fraud as a scheme to deprive another of the intangible right to honest service. Enron was subject to quite a few other laws that were broken. The company was supposed…
Insider trading is another popular white-collar crime and it is where material and nonpublic financial information is uses to gain an unfair advantage when trading securities (Adler et al., 2012). Bankruptcy fraud is any method used to take advantage of loopholes in the bankruptcy laws. Some of the most common frauds are the “similar-name”…
to their creditors. Beth Sullivan has to choose whether to cover-up Roger’s actions and possibly get in trouble too or report him to the Board of Directors. Dugas Incorporated is affected through the sale of shares at a low price due to leaked insider information. Lastly, if he makes poor choices, the accounting profession as a whole may be affected. People will look poorly at the it and, as shown in the past,…