WGU C214
1. Securities act of 1933: *Prospectus* with audited financial statements
through the SEC (for transparency)
2. SEC: Regulates security markets for transparency, 10 k annual reports required
by public companies
3. Sarbanes-Oxley Act: Transparency by requiring off balance sheet transaction
reporting,
audited, internal controls with an annual audit required
4. FINRA: To protect investors
Must be a member to buy or sell securities on behalf of someone else, for example, the
series 67 test is though FINRA
(competency test)
Has the authority to unbar ethical people for life
5. Rule 144A: The sale of private securities in the US to US investors
6. Rule S: The sell of private securities offshore to foreign investors
7. Dodd-Frank Act: "Too big to fail"
The idea that if big bank fail it will crash the economy (limit risk)
More the 250 b in assists
8. FSOC (Financial Stability Oversight Council): Regulate systematic risk
What is the risk that large financial institutions posed to the entire economy
9. Volked Rule: Limits proprietary/hedge fund trading by Banks. Instead they should be
focused customer, focused business
10. decrease CFO: An increase from an asset will _
11. Increase CFO: A decrease from an asset will _
12. Increase CFO: An increase from an liability will _
, .
13. Decrease CFO: An decrease from an liability will _
14. Stocks subsequent to IPO's: Secondary markets sell _
15. AR and inventory (no cash): Current assets for CFO are
16. AP and accrued expenses: Current liabilities for CFO are
17. U.S Outsourcing (using foreign Suppliers): Fewer US jobs
Cheaper consumer goods (good thing)
18 foreign competition (compete with domestic firms): Fewer US jobs
Cheaper consumer goods (good)
19. Tariffs (Tax on imported goods): More US jobs and profits
More expensive consumer goods (bad)
Tariffs: good for firms but bad for economy
20. Strong Dollar: Imports are cheap
Fewer US jobs
21. weak Dollar: Imports are expensive
More US jobs
22. required return: Minimum inducement to buy
23. expected return: Returns bars, expect to earn
24. increase in demand: If expected is grater then required return: price will _
25. The market is in equilibrium
Stock will also reflect the intrinsic value: Both expected return and required. Return
are the same when
26. intrinsic value: The real value of economic benefit to the investor
27. Sell: If market price is greater then the intrinsic value
28. Buy: If market price is less then the intrinsic value
1. Securities act of 1933: *Prospectus* with audited financial statements
through the SEC (for transparency)
2. SEC: Regulates security markets for transparency, 10 k annual reports required
by public companies
3. Sarbanes-Oxley Act: Transparency by requiring off balance sheet transaction
reporting,
audited, internal controls with an annual audit required
4. FINRA: To protect investors
Must be a member to buy or sell securities on behalf of someone else, for example, the
series 67 test is though FINRA
(competency test)
Has the authority to unbar ethical people for life
5. Rule 144A: The sale of private securities in the US to US investors
6. Rule S: The sell of private securities offshore to foreign investors
7. Dodd-Frank Act: "Too big to fail"
The idea that if big bank fail it will crash the economy (limit risk)
More the 250 b in assists
8. FSOC (Financial Stability Oversight Council): Regulate systematic risk
What is the risk that large financial institutions posed to the entire economy
9. Volked Rule: Limits proprietary/hedge fund trading by Banks. Instead they should be
focused customer, focused business
10. decrease CFO: An increase from an asset will _
11. Increase CFO: A decrease from an asset will _
12. Increase CFO: An increase from an liability will _
, .
13. Decrease CFO: An decrease from an liability will _
14. Stocks subsequent to IPO's: Secondary markets sell _
15. AR and inventory (no cash): Current assets for CFO are
16. AP and accrued expenses: Current liabilities for CFO are
17. U.S Outsourcing (using foreign Suppliers): Fewer US jobs
Cheaper consumer goods (good thing)
18 foreign competition (compete with domestic firms): Fewer US jobs
Cheaper consumer goods (good)
19. Tariffs (Tax on imported goods): More US jobs and profits
More expensive consumer goods (bad)
Tariffs: good for firms but bad for economy
20. Strong Dollar: Imports are cheap
Fewer US jobs
21. weak Dollar: Imports are expensive
More US jobs
22. required return: Minimum inducement to buy
23. expected return: Returns bars, expect to earn
24. increase in demand: If expected is grater then required return: price will _
25. The market is in equilibrium
Stock will also reflect the intrinsic value: Both expected return and required. Return
are the same when
26. intrinsic value: The real value of economic benefit to the investor
27. Sell: If market price is greater then the intrinsic value
28. Buy: If market price is less then the intrinsic value
