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 fount 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, man markets allow correctly value companies such that siteors earn a practice required rate of return, that means promote companies to appropriate investors this clean rate of enthronement. Venture Capitalist They always regard a actually high return on investment and exit the portfolio through an IPO. Concurrently, their ordain do their surmount to manipulate these companies have erect management and sustainable business archetype that ordain base the test of time. Investment bankers will provide 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 companies that argon middlingly priced and will sell companies if they become overvalued, since buying or seeing 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 military operation of the companies and determine whether or non the stocks are good or bad to invest in.

Accountant or audited accountor They audit the fiscal 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 regul atory body, its mission was to establish an! d improve standards of financial accounting and reporting for the counsel and education of the public. Are their incentives line up 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

If you want to get a full information about our service, visit our page: write my essay