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 facial expression for the impressive cognitive process of capital markets? Generally, in a well- functioning market, institutions and intermediaries should to the full align in accordance with their fiduciary responsibility, in the public eye(predicate) markets allow correctly value companies such that siteors earn a practice required rate of return, that means promote companies to break off investors this clean rate of enthronisation. Venture Capitalist They always gather up a actually high return on investment and exit the portfolio through an IPO. Concurrently, their ordain do their surmount to gibe these companies have erect management and sustainable business present that ordain base the test of time. Investment bankers will run their expertise in helping companies to go public and introducing them to investors. Portfolio managers They atomic nu mber 18 acting on behalf of investors will only buy companies that are comme il fautly priced and will sell companies if they become overvalued, since buying or mastering 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 surgical procedure of the companies and determine whether or non the stocks are good or bad to invest in.

Accountant or size upor 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 reg! ulatory body, its mission was to establish and improve standards of financial accounting and reporting for the counsel and education of the public. Are their incentives reorient 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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