|When a corporation uses the financial markets to raise new funds, the sale of securities is made in the
|The internationalization of the financial markets has
||allowed firms such as McDonald’s to raise capital around the world.
|The Sarbanes-Oxley Act was passed in an effort to
||control corrupt corporate behavior.
|Insider trading occurs when
||someone has information not available to the public which they use to profit from trading in stocks.
|As mergers, acquisitions, and restructuring have increased in importance, agency theory has become more important in assessing whether
||shareholder goals are truly being achieved by managers in the long run.
|Agency theory would imply that conflicts are more likely to occur between management and shareholders when
||the chairman of the board is also the chief executive officer (CEO).
|The financial markets allocate capital to corporations by
||reflecting expectations of the market participants in the price of the corporation’s stock.
||an insurance product designed to protect financial institutions from customers who default on their loans
|The benefits of social responsibility often include
||a better reputation
|Future financial managers will need to understand
||All of the above