Business & Finance Homework Help

Please answer two of the following questions.  Questions should be answered in complete sentences and should be long enough to completely answer the question.  Clearly state which question you are answering.

 1. When does insider trading occur?  What government agency is responsible for protecting against the unethical practice of insider trading?

2. What is the difference between a primary and a secondary market?

3. How did the recession of 2007-2009 compare with other recessions since the Great Depression?  What effect did the recession of 2007-2009 have on government regulation?

4. What issue does agency theory examine?  Why is it important to a public corporation rather a private corporation?

5. How are institutional investors important to today’s business world?

6. In terms of the life of the securities offered, what is the difference between money and capital markets?

7. Assume you are looking at many companies with equal risk; which ones will have the highest stock prices?

8. Why is profit maximization, by itself, an inappropriate goal?  What is meant by the goal of maximization of shareholder wealth?