...Bernie Madoff was born on April 29, 1938, in Queens, New York, Bernard was born to polish immigrants, work for many years as a plumber. Bernie married Sylvia his wife they had one daughter, son. Bernie had hard times during the Great depression so in 1950 he got involved in finance. Ponzi scheme The unethical research behavior was involved was the hedge funds scheme were he would have to sell or liquidate holding from one hedge funds to keep down pressure on the stock prices. When doing this it will keep the negative pressure off the stock exchange. Berine had celebrity connections from Kyra Sedwick, Kevin Bacon, Tom hanks, and many more people that invested in the hedge funds at first they were getting returns back at 10% return. The company was growing and he was hiring more family members. The person that was hurt by this scheme was his family, friend, and the people that he told he lost 50 million dollars in the stock exchange. His own son turner he in after his father was giving out 12 million bonuses. When asked where the money did come from “Madoff then admitted that a branch of his firm was actually an elaborate Ponzi scheme”. His son turned him in the next day to the federal authorizes. People have the loss of...
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...Initial Public Offerings Name: FIN 370/Finance for Business Date: Initial Public Offerings Private companies transform into public companies to expand and attract investors. To do this they begin selling common stock to institutional investors who then sell the stock to the general public through a securities exchange. According to Mayo, 2012, “If this sale is the first sale of common stock, it is referred to as an initial public offering (IPO).” In this essay, we will attempt to describe the initial public offering for the global firm, Facebook, Inc. We will describe the role of the investment banker and underwriter, the role of an originating house and a syndicate, explain the pricing of the issue, discuss some of the risks involved in the public offering and how the securities laws deal with them, and discuss any foreign exchange risks the company can face with ideas about how to mitigate them. The first thing Facebook needed to do to launch their IPO was to hire an investment banker and an underwriter. Facebook hired thirty-three investments banks who acted as brokers to bring together individuals with funds to invest in Facebook. The underwriters in those investment banks together with Facebook agreed on a certain amount to raise on the IPO. Their underwriters provided several services, but the main role is basically to take responsibility of selling those shares to investors. If they fail to sell the shares, they still owe the agreed amount to Facebook. The investment...
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...Initial Public Offerings Barry England, Steven Nesbit, Clifton Hall, Miguel Villanueva, and John Warren FIN 370/Finance for Business October 27, 2014 Gabriel Renero Initial Public Offerings Private companies transform into public companies to expand and attract investors. To do this they begin selling common stock to institutional investors who then sell the stock to the general public through a securities exchange. According to Mayo, 2012, “If this sale is the first sale of common stock, it is referred to as an initial public offering (IPO).” In this essay, we will attempt to describe the initial public offering for the global firm, Facebook, Inc. We will describe the role of the investment banker and underwriter, the role of an originating house and a syndicate, explain the pricing of the issue, discuss some of the risks involved in the public offering and how the securities laws deal with them, and discuss any foreign exchange risks the company can face with ideas about how to mitigate them. The first thing Facebook needed to do to launch their IPO was to hire an investment banker and an underwriter. Facebook hired thirty-three investments banks who acted as brokers to bring together individuals with funds to invest in Facebook. The underwriters in those investment banks together with Facebook agreed on a certain amount to raise on the IPO. Their underwriters provided several services, but the main role is basically to take responsibility of selling...
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...company would have if they were to expand. First of those options would be to go public through an IPO or Initial Public Offerings. The second option would be to acquire another organization in the same industry in order to expand the business. The third and final option being to merge with another organization. With all three of these options having strengths and weaknesses, this paper will discuss some of the strengths and weaknesses of each and what opportunities may arise from each approach as well as the threats. Other things that this company may want to consider when looking to expand are the effects of globalization on the company's financial decision as well as the factors that contribute to exchange rate risks. Finally ending the paper with mitigating the exchange rate risk. Going Public through an IPO Taking a business public or better known as participating in an initial public offering is a process where the business is offered to the public by selling stock of the company. In turn, these stocks represent a partial ownership in the company to the individuals that purchase the stock. One common step in deciding whether or not to take a company public it is always best to speak with an IPO consultant to help determine the market prospects for the company before proceeding. Acquiring another Organization Acquisitions seem to be a big focus when it comes to the media and there can be some great advantages to acquiring an organization in the same industry. There...
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...Running Head: INTERNATIONAL FINANCE International Money and Finance [Name of the Writer] [Name of the Institution] International Money and Finance Introduction This research is about the impacts of International Finance on performance of any global organisation. It is also known as Multinational Finance, which deals with, the exchange rate, Balance of Payments, economic and cultural exposures (Melvin & Norrbin, 2012. pp. 24). The organisation, which I will, analyze in this paper, is Ultra Electronics Holdings Public Limited Company which is a UK-based multinational organisation and listed in London Stock Exchange. The firm incorporated on June 25, 1993 with the name of Oval Limited. The firm changed its name to Ultra Electronics Holdings Limited on August 27, 1993. On August 30 1996, the company adopted its present name. The firm went public on August 30, 1996 by floating shares in the London Stock Exchange (Ultra Electronics, 2013). After showing constant growth and development for several decades, Ultra is now working in Defence, Security and transport and energy sector. It is Ultra’s utmost priority to gain access to the world’s top two defence budgets, which are the United Kingdom and the United States. Ultra earns almost half of its profits (nearly 49%) from North America. United Kingdom market produces about 29% of the profits. The firm generates 9% of the total profits from Mainland Europe while the rest of the world generates 13%...
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...additional manufacturing plants in Georgia, Michigan, and China. Products include plastic beverage containers, custom plastic parts, and plastic fan parts. The company is a leader in the industry of plastic injection molding. (Virtual Organization Portal, 2012) Riordan Manufacturing wants to expand operations and they have three options when considering expansion. The three options are going public via IPO, acquiring another organization in the same industry, or merging with another organization. The company must consider the strengths, weaknesses, opportunities, and threats of each option before making a final decision on how to expand. Additionally, considerations on the financial effects of globalization, exchange rate risks, and mitigating the exchange rate risks should be analyzed if the company decides to go international. Strengths Riordan manufacturing is looking for ways to expand their business. They narrowed it down to three options which are going public through an IPO, acquisition of another organization in the same industry, or merging with another organization. Riordan executives are taking in consideration the strengths of each option. If Riordan chose to go public through an IPO they will be able to generate revenue that can be used to fund growth plans. In addition, this will create liquidity for owners and potential investors therefore strengthening the company’s marketability. Another...
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...considered a major component of risk? LAN domain 2. What are the risk management techniques? Avoidance, Transfer, Mitigation, Acceptance, 3. A CBA is an effort to Cost and benefit. 4. True or false: Programming bugs is a technique for mitigating vulnerabilities. 5. True or false: Intrusion detection is a technique for mitigating vulnerabilities. 6. True or false: Incident response is a technique for mitigating vulnerabilities. 7. True or false: Continuous monitoring is a technique for mitigating vulnerabilities. 8. A DoS attack is a threat action affecting which IT domain? Wan Domain Chapter 3 9. True or false: HIPAA applies to Federal agencies. 10. True or false: HIPAA applies to health insurance companies. 11. True or false: HIPAA applies to publicly-traded companies. 12. True or false: HIPAA applies to educational institutions. 13. True or false: FERPA applies to Federal agencies. 14. True or false: FERPA applies to health insurance companies. 15. True or false: FERPA applies to publicly-traded companies. 16. True or false: FERPA applies to educational institutions. 17. Which standard contains eight principles specific to security? 18. Which standard gives detailed descriptions of IT practices and comprehensive checklists, tasks, and procedures that can be tailored by IT organizations to fit their needs? ITIL 19. Which agency enforces the SOX? The U.S. Securities and Exchange Commission Chapter 4 ...
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...Introduction Baderman Island Resorts is a place to go for a nice get away for the family because of the atmosphere and the different locations. When one takes a look into the company he or she will find that it is not what he or she would think of concerning the finances. Baderman Island Resorts has its positives as well as its negatives. There are quite a few reasons for this company to be border line of going under. There are a few reasons explained below. Baderman Island Resorts Pro’s and Con’s Baderman Island Resorts is a line of hotels and resorts that has three different locations. The strengths for this company is that it has a mixed variety of properties each with different amenities and can be accessed differently as well. Unfortunately, besides what the hotel offers there are more negatives than positives for this company. Baderman has gone through quite a bit of managerial changes that have brought disorganization to the company. Each manager brought something different to each hotel that has made consistency within the organization nonexistent. The only thing the Baderman Management Company has kept consistent has been how to book rooms and each guest has a uniform check-in process. Each managerial change has affected the profit margin for the Baderman Management Company as well. The organization and storage of data varies from resort to resort. Within the organization some use a paper backup system and others use a digital database. The biggest negative...
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...Lab 2 Align Risk, Treats, & Vulnerabilities to COBIT P09 Risk Management Controls 1. Risk Factors a. Remote communications from home office (MEDIUM Risk) b. LAN server OS has known software vulnerability (HIGH Risk) c. User downloads an unknown e-mail attachment (HIGH Risk) 2. COBIT Risk Management * No. * Yes, the identified software vulnerabilities relate to risk context for both internal and external access. * Yes, the identified software vulnerabilities themselves are events that represent risk identification. Once identified, the event can be assessed for risk. * Yes, once risk events are identified (such as software vulnerabilities), they can properly assessed (quantitatively or qualitatively). * Yes, once the risk has been assessed (high, medium, low) the response that risk can be aligned appropriately. * No. 3. Vulnerability impacts a. Remote communications from home office (Confidentiality) b. LAN server OS has known software vulnerability (Integrity) c. User downloads an unknown e-mail attachment (Availability) 4. Effectiveness, Efficiency, Compliance, and Reliability 5. Mitigated and managed a. Remote communications from home office * Information – Medium Impact, Firewall, Keep up to date * Application – Low Impact, HTTPS for email websites, Make sure it is secured * Infrastructure – Medium Impact, Workstation must have malware and anti-virus detection, Keep up to date * People...
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...of equity (40%) and 60% of debt to finance the project’s $2.425 billion total cost. The financial advisors, Citicorp and Credit Suisse First Boston, used a multi-pronged financing strategy to raise debt from commercial banks, development agencies, and bond investors. In the end, the sponsors raised $450 million in bank finance and $1 billion in Rule 144A bonds, all of which was non-recourse to the sponsors following completion of the project. The decision to finance this deal on a project basis was actually a dual decision regarding both financial and organizational structure. Risks analysis The purpose of this paper is to analyze how the sponsors allocated both contractual and residual risk in the Petrozuata deal. There are four general categories of risk: precompletion risks, operating risks, sovereign risks, and financing risks, but in this paper I will talk just about the last two risks, as being principal part of my contribution to the group case analysis, so here I am going to present the information found that I used while...
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...together and in bad times they all fall together. In the second economy, stock returns are independent - one stock increasing in price has no effect on the prices of other stocks. Assuming you are a risk-averse and you could choose one of the two economies in which to invest, which one would you choose? Explain. Prepare a brief report on your conclusions and illustrate with examples. Answer: I would opt for second economy, as in that economy I will have a ease of diversification which will help in mitigating risk. To design the investment portfolio of it is important to analyze different aspects which are the time for which the funds are being committed for the future needs, the expected rate of inflation and the expected payment that is likely to receive in the future. It is important to diversify your portfolio, so it is advised to focus on investing in different assets as it helps in mitigating risk and giving us adequate returns. Investing in the second economy will help in diversification, distributing the wealth among different countries and classes which will help in providing the best returns by strongly focusing on the attributes and characteristics of the asset and the returns that are likely to be earned from the same. Example: Investing in different moderate to high risk investments with a strong focus on investment in equity which will include foreign as well as domestic equity exposure which will range approximately 60 to 70 percent of the total portfolio along...
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...Multinational Corporation, any advantages/drawbacks, and give examples. What reasons does the author of your text give for becoming a multinational corporation? 2. Discuss the Exchange Rate, Market, and Legal/Political risks that foreign investors confront. 3. Explain the theory of Comparative Advantage, and its implication for production and trade. Are there some countries that have no comparative advantage? What happens if two countries have exactly the same skill, technology, and labor costs? How could comparative advantage explain the overseas shift of manufacturing and the outsourcing of labor? Does it provide the sole explanation, or are there other causes? (If so, discuss.) 4. Discuss the formation of the European Union, and the introduction of the Euro. Discuss the key legal and financial steps did they take to achieve the EU and enter into a common currency, and the challenges they faced (include a timeline). 5. What are the advantages to being in the EU and adopting the Euro (two separate issues)? What are the chief drawbacks (EU and Euro, economic and political)? Why hasn’t England, Norway, Sweden, or Switzerland adopted the Euro? Which are EU members, and why did the others not join the EU? 6. Imagine that you are a trader working for a New York bank. The spot exchange rate against the Canadian $ is...
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...Mitigating the Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Schillen & Steinke Mitigating the Adversity of Outsourcing: Outsourcing from the Employee’s Perspective Sarah J. Schillen Seattle Pacific University USA sschillen@gmail.com Gerhard Steinke Seattle Pacific University USA gsteinke@spu.edu ABSTRACT This paper explores how outsourcing activities and decisions put the well-being of the remaining employees at risk, ultimately affecting productivity and creating further costs to the employer. It highlights four potential threats to remaining employees: trust, job satisfaction, motivation, and stress. The paper provides several suggestions for mitigating these impacts, including communication to retain trust, acting ethically to ensure satisfied employees, seeking an understanding of employee perspectives to build employee motivation, and providing good planning along with training and development to reduce employee stress. INTRODUCTION Globalization provides organizations with more options than ever before. Business leaders are continuously encouraged to adapt, reevaluate, and strategically improve processes and approaches. Best practices are reinvented rapidly in attempt to keep up with market trends. The quest to recognize new methods for increasing revenue has become the inspiration for exploring new management techniques and strategies. One such rising trend in the advent of global markets is that of outsourcing. Common purposes for outsourcing...
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...different and I think his company had a different name. Financial Analysis Task 5 Notes: By careful of changing storyline and excel data. The principles and verbage remains. Custom Snowboards, Inc. Presentation to CFO A1) Summary Introduction Custom Snowboards Inc. is located in Minneapolis, Minnesota, USA. Their current sales are divided as follows:. Currently, 20 percent in the European market, 5 percent in the Canadian market and the majority or 75 percent of sales are in the United States market. Currently there are small warehouse and administrative facilities in both the European and Canadian markets to service respective customers. Four years ago the company offered shares of the company on the public Midwest Stock exchange. Jim Swartz, the founder retained 51 percent of the available shares. Custom Snowboards Inc. management is evaluating a more aggressive market position in the European market. Among the strategies for an increase in market share is to acquire an already established European manufacturer that desires to be acquired. The European Snowfun, Inc. acquisition would require a loan from a bank, for one million dollars. A bank is performing due diligence and requires an appropriate presentation before determining a decision. The terms of the one million dollar loan are: 6.75 percent Apr interest, 60 month term and a $300,000 compensating balance fund. This fund is non-interest bearing, the bank is trustee for use at their discretion for other...
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...Credit Risks Student’s Name University Affiliation Credit Risks What credit risks are faced by retail banking? Retail banks usually face one major credit risk, and that is the risk that arises if type customers of the bank, as well as any other counterparties that are associated with the bank, fail to meet their loan repayment obligations and thus leads to losses for the bank. Other sources of credit risks include foreign exchange, management of cash as well as derivatives of credit (Anolli, Beccalli & Giordani 2013). How are credit risks associated with individuals different from those associated with institutions? Customer credit risk is the risk that is inherent when the customers of a financial institution fail to make payment for various credit products such as loans, mortgage, and credit cards among other. The institutional credit risk, on the other hand, refers to the risk that arises with the corporate services of a company for example from the investment activities. The institutional credit risks are associated with low losses as well as great rigorousness. What retail banking services does your bank provide to individuals? The bank offers a wide range of banking services which include: depository and saving services, insurance services, lending of loans and offering of debit as well as the credit cards. The bank also offers online banking services to the individuals including online banking and bill payment. What retail banking services does your...
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