Explain why the notes to a firm’s financial statements are an integral part of the company. What kind of information is in this section? Why should an average investor be sure to read them?Does paying an executive $1 per year but giving them stock options create an agency issue? Why or why not?
Distinguish between each of the following pairs.What exactly makes them different? Why? Note: Do not cut and past your reply from the internet or the text or you will not receive credit.
- Spot market and futures market
- Option contract and futures contract
- Primary market and secondary market
- Can ethics be legislated? What about SOX? If it follows all applicable rules and regulations is a company ethical?