Answer to Question #314639 in Management for Zeinab Zoayter

Question



Question 1: (20 marks)

Compare and Contrast feature and nature of the Primary market and the Secondary market (400 words)

 

Question 2: (20 marks)

Explain what you know about the Sarbanes Oxley Act of 2002. How do the actual effects of the Act compare to its initial intent? (400 words)

 

Question 3: (20 marks)

Maximizing the current stock value requires prudent investing and financing decisions. Financial managers generally make these decisions in the two-dimensional space of return and risk. In this respect, explain what are the additional dimensions Middle Eastern financial managers need to consider in corporate decision making process. (400 words)

Answer 1

The term "market" can have many distinct connotations, although it is most commonly used to refer to both the primary and secondary markets. In truth, the phrases "primary market" and "secondary market" are interchangeable; the primary market is where securities are generated, while the secondary market is where they are traded among investors.

Understanding how stocks, bonds, and other securities trade requires knowledge of both the primary and secondary markets. Without them, navigating the stock markets would be much more difficult and less rewarding. We'll explain how these markets operate and how they affect individual investors.