Shanghai Stock Exchange

In 1960 Bernard Madoff started in Manhattan at his wife’s dad’s investment place until he started his own firm, which was very small in the beginning. He would make his money off of the variances between the offer price and sales price of stock. As Madoff became more successful he gained more clients and they were starting to work that they would lose their licenses through the SEC. According to the film this investigation was only a “bump in the road” they paid the money back and continues on…

substantial changes in the pricing of a company’s stock. “Insider trading” is a term that is commonly known to investors, but what is insider trading? This term in most cases is references to illegal actions. However, the term speaks to both legal and illegal actions. According to the U.S. Securities and Exchange Commission (n.d.) (SEC), Insider trading as a legal action, addresses when corporate insiders-officers, directors, and employees-buy and sell stock in their own companies. In situations…

informing two stockbrokers about stocks and columns that have high predictable value on the market. R. Foster Winans disclosed this information to the stock brokers before the company made the information available to the public. The crime that was committed in this case is referred to as insider trading. Insider trading is when employees inside of a company have access to profitable information that has not been made available to public in regards to the stock market. In addition, insider…

Choice #1: Ethical Business Management Sometimes, in firms, the interest of the stockholders and that of management will diverge and misalign thereby resulting in mismanagement of the business. Such separation leads to what is known in the finance world as an agency problem. Moreover, one of the five principle foundations of finance is principle number five (5) which points out that a conflict of interest will cause this agency problem (Keown, Martin, & Petty, 2014). Presented is an analysis…

Earnings per share of common stock: Profit allocation to outstanding shares on common stock is measured by this ratio. Company G jumped from a $0.672 in 2001 to a $1.03 for the year 2012. Benchmarks for the quartile industry are 0.83/0.87/0.9. Earnings per share of common stock for Company G represent and increment above average. Earnings per Share of Common Stock represent strength for Company G. L. Price earnings ratio: This ratio values current share price and compares to earnings per…

Acme Products, Inc., requires a new machine to produce a part for a heat generator. Two companies have submitted bids, and you have been assigned the task of choosing one of the machines. Cash flow analysis indicates the following: Year Machine A Machine B ---- --------- --------- 0 -$1,000 -$1,000 1 0 417…

Midwestern Contemporary Art The case study presented, Midwestern Contemporary Art, illustrates a classic power conflict between two men, Peter Smith and Keith Schmidt. Peter is the chairman of the board and former municipal judge who, along with his wife, loves contemporary art. He and his wife became involved with the Midwestern Contemporary Art (MCA) museum when they began collecting art pieces, and he was eventually named chairman of the board. Keith is the executive director of the…

Fiduciary duty refers to a legal obligation to act purely in the interests of another party. The party that owes the duty is known as the fiduciary, while the party to whom the duty is owed is known as the principal. The fiduciary is not allowed to benefit from this relationship unless the principal expressly consents to it. In addition, the fiduciary should not have any conflict of interest with the principal. Furthermore, in cases where the fiduciary has several principals, the fiduciary…

understanding of investing will lump stocks and bonds together when talking about investing in markets. While they do share some similarities, there are also significant differences one needs to be aware of, such as how the investment works, the outside forces that influence value, liquidity, and the markets where they are traded. It is also important to understand rates of return, so I shall include multiple examples using a stock with and without a dividend component. Stocks are probably the…

Supply, Inc. has released its annual report. This report includes a five-year financial summary for the fiscal years 2016-2020. Financial summaries are used to help investors throughout the decision making process of investing in a company’s common stock. Some of the strategies involved in this decision are evaluating the growth of the company’s income, net sales, and inventory turnover, along with dividend payout. The combination of these strategies and the annual report should give an investor…