Balance Sheet and Primary Market
Team C Discussion Questions
Week 1
Rodney Brooks, Sekou Clements Jamie Deering,
Jeffrey Harold, Eric Hughes, Kyle Leibe
FIN 370
August 12, 2012
Prof. Thomas Prince
Team C Discussion Questions
What is the capital market? How is the primary market different from the secondary market? In you opinion, are these markets efficient? Why?
The capital market is the part of the financial system concerned with raising capital by dealing in stocks, bonds, and other long term investments. A primary market is a market where a company is issuing stocks or bonds to a potential interested buyer. After the primary market which is the initial public offering is the secondary market. The secondary market allows people to buy and sell stocks to each other on such as the stock exchange or NASDAQ. For example, XYZ Corporation just opens it sells to the primary market. John Smith buys from the primary market, but then decides to sell it to a friend, Amy Bank who wants to buy it from John Smith. John then sells it on the secondary market to Amy.
What are three primary roles of the U.S Securities and Exchange Commission (SEC)?
The primary roles of the (SEC) are protecting the investors, maintaining order, and efficient markets and facilitate capital formation. How does the Sarbanes-Oxley Act of 2002 augment the SEC 's role in managing financial governance?
The Sarbanes-Oxley Act enables the SEC to regulate studies on financial reporting system of a principle established accounting system. This act, is like an overseer of the SEC and give structure to what the SEC is suppose to be doing. Do you think businesses became more ethical after Sarbanes-Oxley was passed? Provide examples to support your answer. Yes, because if the Enron scandal with the board of directors voting to suspend the code of ethic, benefiting a personal gain and not taking in account of other shareholders. Then that means that at any given time the board of any corporation can take the law into their
Week 1
Rodney Brooks, Sekou Clements Jamie Deering,
Jeffrey Harold, Eric Hughes, Kyle Leibe
FIN 370
August 12, 2012
Prof. Thomas Prince
Team C Discussion Questions
What is the capital market? How is the primary market different from the secondary market? In you opinion, are these markets efficient? Why?
The capital market is the part of the financial system concerned with raising capital by dealing in stocks, bonds, and other long term investments. A primary market is a market where a company is issuing stocks or bonds to a potential interested buyer. After the primary market which is the initial public offering is the secondary market. The secondary market allows people to buy and sell stocks to each other on such as the stock exchange or NASDAQ. For example, XYZ Corporation just opens it sells to the primary market. John Smith buys from the primary market, but then decides to sell it to a friend, Amy Bank who wants to buy it from John Smith. John then sells it on the secondary market to Amy.
What are three primary roles of the U.S Securities and Exchange Commission (SEC)?
The primary roles of the (SEC) are protecting the investors, maintaining order, and efficient markets and facilitate capital formation. How does the Sarbanes-Oxley Act of 2002 augment the SEC 's role in managing financial governance?
The Sarbanes-Oxley Act enables the SEC to regulate studies on financial reporting system of a principle established accounting system. This act, is like an overseer of the SEC and give structure to what the SEC is suppose to be doing. Do you think businesses became more ethical after Sarbanes-Oxley was passed? Provide examples to support your answer. Yes, because if the Enron scandal with the board of directors voting to suspend the code of ethic, benefiting a personal gain and not taking in account of other shareholders. Then that means that at any given time the board of any corporation can take the law into their
References: Getting Started. Principles of Finance, Titman, Keown and Martin (2011),pg11 www.upxsuccess.com/FIN370_DQ_Sarbanes_Oxley.html