Generally, in a well- functioning market, institutions and intermediaries should to the full align in accordance with their fiduciary responsibility, public markets allow correctly value companies such that siteors earn a practice required rate of return, that means promote companies to give investors this clean rate of investment.
Venture Capitalist
They always demand a actually high return on investment and exit the portfolio through an IPO. Concurrently, their ordain do their surmount to ensure these companies have erect management and sustainable business model 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 are acting on behalf of investors will only buy companies that are fairly priced and will sell companies if they become overvalued, since buying or holding 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 performance of the companies and determine whether or not the stocks are good or bad to invest in.
Accountant or auditor
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, its mission was to establish and improve standards of financial accounting and reporting for the counsel and education of the public.
Are their incentives aligned 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: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment