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Financial Markets
Fair Conditions
Financial Contracting
Financial Services
Financial Management
100
In financial markets, this is defined as either substantively (when a price reflects actual value) or procedurally (when the price of a security reflects the actual value)
What is Fairness
100
An analogy used to describe the meaning of Fairness: HINT - Sports Reference
What is Level Playing Field
100
Some financial instruments, such as home mortgages and future options are, _______ which commit the parties to certain agreements, financial responsibilities, and course of actions.
What is a Contract
100
Financial Service Firms act primarily as _________, by which they use their own capital to provide services rather than to trade on their own behalf.
What is Financial Intermediaries
100
In financial theory, this is the overall objective of a financial management firm
What is SWM (Share-holder Wealth Maximization)
200
The issue or exchange of securities to make false statement on a material fact, to omit a fact that makes a statement of materials facts misleading or untruthful
What is Fraud/Manipulation
200
Unequal information, or _________ may refer either to the fact that all parties to a transaction do not possess the same information or they do not have access to the same information
What is Information Asymmetry
200
Contracts are sometimes imperfect because of ______ which can be caused by: incomplete knowledge, bounded rationality, and future contingencies.
What is Cognitive Ability
200
An unethical behavior in which a personal interest of the fiduciary or agents interferes with the ability of the person to act in the interest of another person
What is Conflict Of Interest
200
A critical, often overlooked task of financial management is determining the level of a person's/businesses/ or investments _________.
What is Level of Risk
300
When a person gets confidential information about securities through unauthorized channels, and makes a move (sell/buy) before economic downfall or boost
What is Insider trading
300
True/False: The unequal possession of information is unfair only when the information has been legitimately acquired
What is FALSE - when the information has NOT been legitimately acquired
300
TRUE/FALSE - A Financial Contract must have money values written, understood, and sign upon values within the agreement.
What is TRUE - without values, the contract can be voided because of unclear terms
300
An exaggeration or misrepresentation of a product or service is an unethical behavior called _____
What is Puffery
300
If a stock is rising it is known as THIS animal.
What is a Bull?
400
This celebrity was made an example of by the United States Judicial system due to their involvement with Insider Trading
Who is Martha Stewart
400
A friend works for Company A. You work for Company B and own stock in Company C. If your friend has no affiliation with Company C, and tells you that he has a feeling Company C's stocks may drop. IS THAT INSIDER TRADING?
What is NO
400
This term describes the building of working relations as an alternative to rigid contracts.
What is Relational Contracting
400
In a financial service agreement, many customers (and employees must sign this document, in order to protect people from fraud or abuse from financial services.
What is PDAA (Pre-dispute arbitration agreement)
400
These types of business acquisitions are described as epic battles with a winner and loser. Many guidelines are placed on these types of buy-outs between corporations
What is a Hostile take-over?
500
In 1929, this economic downfall put the United States into a major depression
What is The Stock Market Crash
500
TRUE/FALSE - Everyone has the same opportunity and obligations to obtain information fairly
What is FALSE - People get inside information by working for a company that people on the outside may not know
500
TRUE/FALSE - An example of a legitimate financial contract is my friend saying "I will buy your bike for $200." I accept, and the finances are exchanged.
What is TRUE - Example of a VERBAL CONTRACT. Can be legitimized in the federal court system
500
List one of the 2 ethical questions that managers of large investment portfolio companies must face when making decisions... Also explain WHY these are important.
1. Should they consider social factors in making decisions? such as how corporations treats it's employees or it's record on the environment? 2. Should they vote that stock that they hold, and if so, what criteria should they use to evaluate the issued that are submitted to a vote?
500
This type of financial management, is an economic state where the company exercises it's option to "sell" the corporation to it's debt holders
What is Bankruptcy?