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adell [148]
3 years ago
8

The Securities Exchange Act of 1934 limits, but does not prohibit, corporate insiders from trading in their own firm's shares. W

hat ethical issues might arise when a corporate insider wants to buy or sell shares in the firm where he or she works
Business
1 answer:
liberstina [14]3 years ago
4 0

Answer and Explanation:

The ethical issues that occurs in the case when a corporate insider wants to purchase or sells in the firm where an individual works are as follows:

1. The information could be misuse

2. It would become unfair for the investors

3. The trust could be broke also it would create the discrimination with the other investors

4. The insider trading lowers the size of the market that ultimately decrease the volatility of the market

You might be interested in
The management team of Wickersham Brothers Inc. is preparing its annual financial statements.
scoundrel [369]

Answer:

Wickersham Brothers Inc.

Statement of Cash Flows, indirect method:

Operating Activities:

Adjustment of Net Income  $70,360

Add Depreciation                   24,640

Cash from operations                          $95,000

Working capital adjustments:

Accounts receivable                            -$15,500

Inventory                                                   7,750

Accounts Payable                                  -$3,100

Salaries & Wages Payable                        1,550

Income Tax expense                           -$17,590

Interest expense                                  -$4,650

Cash flow from operating activities   $64,460

Financing Activities:

Long-term note payable -$15,500

Common Stock               $20,000

Dividend                         -$26,400

Cash flow from financing activities  -$21,900

Investing Activities:

Equipment                                        -$83,000

Net Cash flows                                 ($40,440)

Explanation:

a) Balance Sheet

Assets:                              Current Year       Prior Year

Cash                                     $95,700            $114,900

Accounts receivable            124,000             108,500

Merchandise inventory        93,000             100,750

Property and equipment    176,000               93,000

Less: Accumulated

depreciation                       (50,640)             (26,000)

Total assets                    $438,060             $391,150

Liabilities:

Accounts payable            $15,500               $18,600

Salaries & Wages Payable   3,100                   1,550

Notes payable, long-term 77,500                93,000

Stockholders' Equity:

Common stock               144,000               124,000

Retained earnings         197,960                154,000

Total Liabilities and

Stockholders' Equity $438,060               $391,150

b) Income Statement

Sales                          $420,000

Cost of goods sold     220,000

Depreciation expense  24,640

Other expenses          105,000

Net income                 $70,360

c) Operating Activities:

Accounts receivable -$15,500

Inventory 7,750

Accounts Payable -$3,100

Salaries & Wages Payable 1,550

Income Tax expense -$17,590

Interest expense -$4,650

Net Income                   $70,360

Add Depreciation           24,640

Cash from operations $95,000

d) Financing Activities:

Long-term note payable -$15,500

Common Stock $20,000

Dividend -$26,400

e) Investing Activities:

Equipment -$83,000

f) The indirect method is one of the two methods for preparing the Statement of Cash Flows.  This method takes the net income and adjusts non-cash flow expenses, like depreciation.  It is prepared through a reconciliation of balances, of inflows and outflows during two periods.

7 0
3 years ago
You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current mo
Maslowich

Answer:

<u>Mortgage liaiblity today: </u>424.092,31‬

Explanation:

We need to solve for mortage principal then;

how much do we amortize during four years and eight months old.

Last, decrease from the principal to know the current mortgage liability:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 3,120

time 360 (30 years x 12 months per year)

rate 0.00625

3120 \times \frac{1-(1+0.00625)^{-360} }{0.00625} = PV\\

PV $446,214.9972

Interest at first period:

446,215 x 0.00625 = 2.788,84

<u>Amortization at first period:</u>

3120 - 2,788.84 = 331.16

<u>Total Amount amortized:</u> will be the future value of the annuity of this first depreication during the life of the mortgage

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C 331

time 56

rate 0.00625

331.16 \times \frac{(1+0.00625)^{56} -1}{0.00625} = FV\\

Total Amortized: $22,122.6919

<u>Mortgage liaiblity today:</u>

446,215 - 22,122.69 = 424.092,31‬

4 0
3 years ago
The liquidity of the market is _____ in a purely domestic capital market. Multiple Choice unlimited limited held in reserves bas
MakcuM [25]

Answer:

The answer is B. Limited

Explanation:

A market is liquid if market participants can either sell or buy securities (assets, bonds etc.) easily with low transaction costs or without significantly reducing its price.

A purely domestic capital market is not as liquid as the one that also involves foreigners because it is purely domestic and market participants wont be that much compared to if market participants also involve foreigners.

Number of market participants is a key to liquidity. The higher the number, the more liquid a market is.

7 0
3 years ago
What consequences do borrowers face if they miss many payments?
Oksi-84 [34.3K]
Depends on who they are owing money. But the party that lent the money can take legal action against the borrower and can get the state involved to seize property from him/her. Also depends on state and local law.
6 0
3 years ago
I need help on creating my resume. I’m a high schooler currently in the 11th grade. I haven’t won any awards here at my high sch
77julia77 [94]

To create an effective resume, you must explain your educational and professional experiences. If you are still a student looking for your first professional opportunity, a good way to attract the attention of recruiters is to include your awards won in the educational environment on your resume.

<h3 /><h3>How to create a good resume?</h3>

Some tips can be important for you to create an attractive resume. It's always good to align your experiences with the area you want to compete in, that is, include courses, extra curricular experiences and awards that have to do with the field of work that interests you. Other important tips are:

  • Keep your CV objective and concise
  • Review your personal data
  • Highlight your personal achievements
  • Be honest about the information provided
  • Include your volunteer work

Therefore, for a student to create an effective curriculum, the inclusion of awards and achievements from student life will attract the attention of the recruiter by showing interest, dedication and perspectives of the candidate, being a great opportunity to win a job.

Find out more about resume here:

brainly.com/question/14218463

#SPJ1

6 0
2 years ago
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