Investors are not that educated and aware about complex financial securities . Mortgage based securities on the prima facie, looks like a highly secure asset which is backed is mortgage and they feel like it is not going to lose much value.
Investors can not easily access the complexity of the constitution of mortgage backed securities and type of risks it is exposed to.
Mortgage backed securities are exposed to various type of credit risks which are not easily ascertainable by common investors. They feel like company is highly secured and hedged but they cannot easily guess the financial mayhem it can cause.
3. Why do you think it is difficult for investors to assess the financial condition of...
1.Why do you think banks and other financial institution are regulated? Is regulation justified? 2.What is a bank run? Why is it important? 3.Do you think prudential bank regulation effective? If so why?
What do you think is the most difficult item for the union to negotiate? Why?
(b) economically ellilier Do you think investors can earn abnormal returns in financial markets that are at least semistrong-form efficient? 3-3
Exxon Mobile seem to use two very large segments. Do you think that gives investors a sufficient understanding of the business and its revenue sources? Why or why not?
1. In the income statement, do you think potential investors in your business will be more interested in earnings (net income) or cash flow? Why do you think that? 2. Two common ratios that provide similar information to an enterprise are the Current Ratio and Quick Ratio. 1)What basic information do these ratios provide, that is, which category do these ratios fall into? 2)Suppose a camping product retailer has a liquidity ratio of 2.7. What does this say about the...
Do you think that investors are getting concerned that SOX has gotten stale and is not as much of a threat for bad behavior? Why or why not?
Why do you think some patients have a difficult time trusting case managers when they are first assigned to one? Explain.
1. In financial markets, participants who receive more money than they spend, such as investors, would be considered: A. deficit units B. noncompliant units C. surplus units D. indiscernible units represent ownership in a firm or company. A. debt securities B. equity securities C. derivatives securities D. credit securities 3. Facebook shares currently trade in the stock-market under the symbol FB. If Ms. Jones decides to purchase 1,000 shares at the current market price, the transaction would occur in the:...
When considering companies' financial statements, we often think of investors and analysts using the information contained in those statements to assess whether or not to invest in the companies. However, financial statements are not just for investors. Please explain who else should be concerned with a company's financial statements and why they are important. As portfolio activities are to be self-reflective, please make sure to connect the portfolio assignment to: . Your personal experiences. Reflect on how this assignment topic...
Nerve pain, neuritis can be very difficult to treat. How do you think you would interact with a patient that suffers from neuritis that is not decreased with medication? Do you feel that we can help ease a patient's overall condition through empathy?