What Is the Intended Role of Each of the Institutions and Intermediaries Discussed in the Case for the...

What is the intended theatrical role of each of the institutions and intermediaries discussed in the trip for the impressive functioning of capital markets? Generally, in a well- functioning market, institutions and intermediaries should to the full align in accordance with their fiduciary responsibility, usual markets allow correctly value companies such that siteors earn a practice required rate of return, that means promote companies to leap investors this clean rate of investment funds. Venture Capitalist They always assume a actually high return on investment and exit the portfolio through an IPO. Concurrently, their ordain do their surmount to fasten these companies have erect management and sustainable business mold that ordain base the test of time. Investment bankers will impart their expertise in helping companies to go public and introducing them to investors. Portfolio managers They argon acting on behalf of investors will only buy companie s that atomic number 18 circusly priced and will sell companies if they become overvalued, since buying or chartering an overvalued sway will inevitably result in a loss. Sell-side and buy-side analysts They will help investors including portfolio managers monitor objectively the process of the companies and determine whether or non the stocks are good or bad to invest in.

Accountant or analyzeor They audit the financial statements of companies and ensuring that they comply with realised standards and represent the true and fair states of the firms. That gives investors confidences and advices to make decision found on financial statements. FASB As a regulatory body, i ts mission was to establish and improve sta! ndards of financial accounting and reporting for the counsel and education of the public. Are their incentives adjust properly with their intended role? Whose incentives are most misaligned? Buy-side analysts and portfolio managers did not act in the best interests on investors. Buy-side firms buy and hold to the internet...If you want to get a full essay, order it on our website: OrderEssay.net

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