1. What does it mean when we say the New York Stock Exchange is an auction market?
How are auction markets different from dealer markets?
What kind of market is NSDAQ?
2. Suppose you were the financial manager of a not-pro-profit business(a not-pro-hospital perhaps).
What kinds of goals do you think would be appropriate?
3. Evaluate the following statement: Managers should not focus on the current stock value because doing so will lead to an overemphasis on short-term profits at the expense of long-term profits.
4. Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior?
In particular, do you think subjects like customer and employee safety, the environment, and the general good of society fit in this framework, or are they essentially ignored?
Think of some specific scenarios to illustrate your answer.