Nakedecon4

Nakedecon4 - DP 7-8 Stories of people making fortunes from...

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DP 7-8 Stories of people making fortunes from the securities market have enticed many others into risky investments. Congress created the Securities & Exchange Commission (SEC) to protect investors. Many corporation managers became greedy and made self- serving decisions that created the principle-agent problems. The solutions for these problems lead to more unethical behavior from management. The creative use of financial statements even tricked analysts and brokers. Public trust began to erode with unethical corporation behavior. Analyst’s suspicions of some corporations cooking the books were confirmed with an announcement from WorldCom. The public’s distrust started to mount while accusing brokers of hyping stocks. People began to invest without brokers’ advice. Golden opportunities lie ahead for those who invest well in stock market securities. The stock market, which was once the province of the very rich, is now easily accessible to millions of ordinary investors. Ordinary investors have flooded stock market
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This note was uploaded on 03/02/2010 for the course ECON 110 taught by Professor Vernon during the Summer '07 term at BYU.

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Nakedecon4 - DP 7-8 Stories of people making fortunes from...

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