Notes On Mutual Fund Industry

Notes On Mutual Fund Industry
CHAPTER – I
OVERVIEW OF MUTUAL FUND INDUSTRY IN INDIA
CONTENTS:
1.1 Introduction
1.2 What is Mutual Fund?
1.3 Evolution of Mutual Fund Industry
1.4 Universal Role of Mutual Fund
1.5 Organization Structure of Mutual fund
1.6 Foundation of Mutual Fund in India
1.7 Growth of Mutual Funds in India
1.8 Kinds of Mutual Funds
1.9 Benefits of Mutual Funds
1.10 Drawback of Mutual Funds
1.11 Mutual Fund & Capital Market
1.12 Role of Security Exchange Board of India
1.13 Role of Association of Mutual Fund in India
1.1 INTRODUCTION:
The Indian financial system based on four basic parts like money Market, money establishments,
money Service, and money Instruments. All area units play basic position for light events for the
relinquishing of ... Show more content on Helpwriting.net ...
in keeping with the expansion monetary sector and second generation restructurings its ought to
execution of the financial sector. It's conjointly ought to providing the economical service to the
capitalist largely if the investors area unit offer bit, in this purpose of read the investment trust play
very important for higher service to the little investors. The most vision for the analysis for this
study is to scrutinize the performance of 5 star rated mutual funds, given the load of risk, return, and
assets beneath management, web assets worth, value and value earnings quantitative relation.
1.2 WHAT IS A MUTUAL FUND?
Mutual fund is that the pool of the cash supported the trust who invests the savings of a number of
investors who shares a standard money goal, just like the capital appreciation and dividend earning.
The cash therefore collect is then invested with in capital market instruments such as shares,
debenture, and foreign market. Investors invest cash and obtain the units as per the unit price that we
have a tendency to refer to as NAV (Net Assets Value). investment company is that the most suitable

investment for the soul because it offers a chance to speculate in wide–ranging portfolio
management, sensible analysis team, professionally
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Tax Law Case Study
FACTS:
Client A is an unmarried U.S. taxpayer residing in New York City. Recently client A's investment
advisor paid her $150,000 for her investment losses. Per the client, the losses occurred due to the
advisor not changing her investment objectives for her account from "all equity" to "current income"
in a prompt manner. However, the advisor understood her request to mean restructure her portfolio
over time as opposed to immediately. Consequently, client A incurred large monetary losses due to
the delay of selling off the volatile securities to safer conservative securities. Nevertheless, both
parties agreed to the $150,00 settlement without admission of fault by either party.
ISSUE(S):
The first concern is whether client A's entire ... Show more content on Helpwriting.net ...
This section of the code excludes specific awarded damages from gross income for occurrences such
as personal physical injuries subjected within the workplace, accidents, and sickness due to a third–
party involvement." For example, an employee falling down a work staircase due to a faulty banister
railing not properly maintained or a motor vehicle accident caused by another driver's carelessness
(texting while driving) and lastly an "asbestos–related disease from working in power plants without
protective gear" would all be excludable from gross income (Power Plants, n.d.). The "requirements
for exclusion of settlements for a recovery to be excludable under section 104(a)(2) is best defined
in James D. Ktsanes, TC Summary Opinion 2014–85, Code Sec(s) 61; 104, 09/2/2014 where the
taxpayer argued that a settlement of $65,000 received from an insurance company fell under the
guidelines of IRC § 104 due to his Bell's Palsy. Regrettably, the Tax Court's "decision did not allow
the $65,000 payment to be excluded from the taxpayer's gross income based on the payment being

Fundamentals of Indirect Investing
Chapter 3
INDIRECT INVESTING
Multiple Choice Questions
Investing Indirectly
1. Which of the following is not a characteristic of investments companies?
a. pooled investing b. diversification c. managed portfolios d. reduced expenses
2. In order to avoid paying income taxes, an investment company must:
a. be classified as a non–profit organization b. invest only in municipal bonds. c. pass on interest,
dividends, and capital gains to the stockholders. d. be registered as a closed–end investment
company.
3. Investment companies must register with the SEC under the provisions of the:
a. Securities Act of 1933 b. Securities Exchange Act of 1934 ... Show more content on
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d. All of the above are true.
16. If a mutual fund holds a substantial amount of Treasury bills, this is probably a(an):
a. tax–exempt fund. b. conservative bond fund. c. income fund d. money market mutual fund.
17. Which of the following is true regarding value funds and growth funds?
a. Value funds seek stocks that are cheap by fundamental standards while growth funds seek stocks
with high current earnings. b. Growth funds typically outperform value funds. c. Value funds and
growth funds tend to perform well at different times. d. All of the above are true.
18. In general, index funds:

a. are higher risk than other funds. b. are traded on the exchanges. c. have lower expenses than other
funds. d. all of the above.
The Mechanics of Investing Indirectly
19. Net asset value takes into account:
a. both realized and unrealized capital gains. b. only realized capital gains. c. only unrealized capital
gains. d. neither realized or unrealized capital gains.
20. If NAV > market price of a fund, then the fund:
a. is selling at a discount. b. is selling at a premium. c. is an index fund. d. is an ETF.
21. Mutual funds may be affiliated with an underwriter. This means:
a. the underwriter

Stanford Financial Group Corporate Scandal
Stanford Financial Group Corporate Scandal
Authors: Brian Bailey, Gina Hallman, Matthew Kazor,
ShaVonne Robinson, Daryl Wertz, and Devin Williams
Date: Week 5 Tuesday 22nd January 2013
1–2. In February of 2009, the Antigua/Texas based global financial group (made up several
subsidiaries owned by the same owner) owned by R. Allen Stanford was charged with scamming
their customers by the Securities and Exchange Commission. Stanford Financial Group was charged
with fraud when deceptively selling consumers $8 billion dollars in deposit certificates. According
to The Money Alert, "A certificate of deposit, or CD, is a type of low–risk investment that many
people use when they want a small return on their investment without having ... Show more content
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The Houston Texas, firm and subsidiaries were involved in a huge Ponzi con artist scheme which
resulted in 20 years of stealing over $7 billion international dollars. The end result was $17,000
supposed investors turned victims in the U.S. and other locations within the Americas. Davis in
particular was originally on the cusp of having to serve 110 years, shortening his sentence because
he as the second in charge he was able to provide a copious amount of priceless data against
Stanford who's end sentence was 110 years.
5. There were several sanctions levied against the corporation: (1) James M. Davis, CFO of Stanford
International Bank (SIB) and Houston–based Stanford Financial Group, was sentenced today to five
years in prison for his role in helping Robert Allen Stanford perpetrate a fraud scheme involving SIB
and for conspiring to obstruct a U.S. Securities and Exchange Commission (SEC) investigation into
SIB. (2) Personal money judgment of $1 billion. (3) Stanford and Holt are currently serving 110
years and three years in prison, respectively. (4) Lopez and Kuhrt are in federal custody and await
sentencing, scheduled for February 14, 2013.
6. Our thoughts on the sanctions for Allen Stanford were fair enough and taken very seriously.
Stanford was sentenced to 110 years in prison with a one billion dollar fine. However, the sanctions
for James Davis are not severe enough. Conversely,

What Led to the United States Entering the Second World...
"We shun political commitments which might entangle us in foreign wars...We are not isolationists
except insofar as we seek to isolate ourselves from war...If we face the choice of profits or peace,
this nation will answer...This nation must answer...We choose peace" Frank Delano Roosevelt, 1936
The Unites States of America was the last of the world's great nations to fight in the Second World
War. In the 1930's, America did not use great economic, and political influence which she possessed
to slow the aggressive expansionist ambitions of Germany, Japan and Italy (the Axis Alliance).
Instead she chose to remain in isolation and withdrew from world affairs, which had a profound
effect in the background to the war in 1939 . This essay will discuss the period between 1936–1941
and the reasons, which led America entering the Second World War in that period. In the next two
paragraphs a brief reference is made to America's expansionist past and the Spanish–American War
which would provide background information about the topic of the essay in later paragraphs.
Several factors account for America's desire to adopt an expansionist foreign policy in the 1890's.
The rapid expansion of the U.S. economy after the civil war and completion of industrialization of
the country which had been briefly hindered by civil war, allowed American industries to flood the
domestic market with consumer goods. Mechanization and mass production combined with
improvements in transport systems, especially

The US Securities And Exchange Commission (SEC)
The U.S. Securities and Exchange Commission that was established in 1934 by the United States
Congress as an independent, quasi–judicial regulatory agency following the Crash of 1929. The SEC
is a federal agency that serves the purpose of administrating and enforcing when necessary federal
securities laws that were put in place to protect investors. A further look at what the SEC is and how
it is structured will be explained in this paper. Also a look at the federal laws that the SEC
administers and enforces will be divulged to further emphasize what the SEC is as well as what it
does. The distinctive reason the SEC was created was to "regulate the stock market and prevent
corporate abuses relating to the offering and sale of securities ... Show more content on
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The first of the major laws is the Securities Act of 1933 of which there are two objectives; it
"requires that investors receive financial and other significant information concerning securities
being offered for public sale and prohibits deceit, misrepresentations, and other fraud in the sale of
securities" (U.S., 2013). The second is the Securities and Exchange Act of 1934 this act gives the
SEC broad authority over the securities aspects including the regulation, overseeing and registering
of clearing agents, transfer agents and brokerage firms of which this may include SROs or self–
regulatory organizations. The third is the Public Utility Holding Company Act of 1935 which
regulates retail distribution of natural or manufactured gas and electric utility. The fourth is the Trust
Indenture Act of 1939 which applies to when notes, bonds or debentures are offered for public sale
this act applies to those debt securities. The fifth act is the Investment Company Act of 1940
"regulates the organization of companies, including mutual funds, that engage primarily in
investing, reinvesting, and trading in securities, and whose own securities are offered to the
investing public" (U.S., 2013). The final law is the Investment Advisors Act of 1940 "requires that
firms or sole practitioners compensated for advising others about securities investments must
register

How Underfunded Public Pensions Be Around The Country Essay
There's a lot of discussion in the news about how underfunded many public pensions are around the
country. States like Alabama, Michigan, Illinois, and Arizona are in the news for high, pension plan
debt that are eating away city and state budgets. But, the public sector isn't alone in underfunding
pensions. Not all private pensions are the money in the bank that employees think they are, in fact
they are doing about the same as public pensions. Neither is 100 percent funded. The result?–A
combined deficit in retirement plan savings of over $4 trillion for payees between the ages of 25 and
64. A Quick History of Retirement: Then and Now In 1875, the first private pension plan was
created by the American Express Company. Because most employers were not publically traded
companies, they were rare. A series of revenue laws passed by congress from 1921–1929 helped
private pensions grow by safeguarding funds from federal taxation and providing tax credits to
employers who contribute to an employee pension plan. Amazingly, private pension plans survived
the stock market crash in October of 1929 with only a three percent of workers losing their plans. In
fact, a few of the private pension plans started before 1929 are still active today– U.S. Steel
Company (1911) General Electric Co. (1912) American Telephone and Telegraph Co. (AT&T)
(1913) Goodyear Tire and Rubber Co. (1915) Eastman Kodak Co. (1929) Shortly after the crash, in
1935, President Roosevelt signed the Social

Organizational Structure Of Mcdonalds
Founded in the year 1940 in California as a small hamburger restaurant in San Bernardino,
California McDonalds Company is a fast food restaurant operating in the USA as well as globally
(Vignali, 97). Boasting of more than 32, 000 outlets worldwide, the company is a franchise which
has independent owners running different outlets (Vignali, 97). The franchise's organizational
structure is divided into three namely; the global hierarchy where the CEO gives all the directives,
the performance–based divisions which measures different regions performances and the function–
based groups which entails the human resource, legal group and the supply chain group
(Thompson). McDonald's products and current state of affairs
McDonald's is a hub of plenty of products and this is one of the key aspects of the company. Most of
its customers visit the outlets since their menu is diverse hence most of the customers' dietary needs
are met. The company's products include; French fries, premium salads, Baked Apple Pie, chicken,
Snack Wrap, Egg McMuffin, the Happy meal, McNuggets, the Big Mac and McDouble
cheeseburgers are among the selling products in McDonalds outlets (Vignali, 98).
One of the current events and state of affairs affiliated to McDonalds is the rebranding of its menu to
appeal to many customers by creating a new look; the event has seen its acceptance by clients
because they were consulted through feedbacks (Shah, 1). Another event has been that of using cage
free eggs which

Ethics and Compliance Paper
Walmart is one of many companies who report its filing with the United States Securities and
Exchange Commission. The purpose for writing about Walmart 's Ethics and Compliance paper is to
inform the reader about Walmart 's important compliance processes. SEC filings, analysis of
financial statements, requirement for certification and legal proceedings will be explained
throughout further reading. Procedures for Ethical Behavior Walmart has an official statement of
ethics which is meant to be applied to not only the associates and directors employed by the
organization but also third parties. These third parties include suppliers, consultants, public relations
firms, contractors and all other third party companies who conduct business ... Show more content
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The legal department will provide a comprehensive list of the legal proceedings. Three officers, the
President and the CEO, the Executive Vice–President and CFO as well as the Senior Vice President
and Controller must sign the filings. For detailed report on the filings please see:
http://yahoo.brand.edgar–online.com/DisplayFiling.aspx?dcn=0000104169–08–000006. The
information about these processes in the organization is obtainable by examining the actions that
show compliance with SEC requirements. One of the best places to get information about the
internal processes of Walmart is to examine the proceedings of the law suits filed against Walmart
and the disclosures in the court contains information about the internal proceedings of Walmart. The
following web sites offer one the opportunity to examine Walmart's compliance with SEC
requirements: http://walmartstores.com/Investors/SECFilings.aspx or
http://www.wakeupwalmart.com/press/article.html?article=784. Apart from this, the SEC is
responsible for the enforcement of the Sarbanes–Oxley Act, the Investment Advisers Act of 1940,
the Investment Company Act of 1940, Trust Indenture Act of 1939 and the Securities Act of 1933. In
consideration of the Sarbanes Oxley Act, the CPA auditor of Walmart is required to comment on the
internal control of the company. The auditor of Walmart, Ernst & Young carries out the requisite
examination of

Current Issues With Financial Planners Essay
What is a Financial Planner?
A Financial Planner is one who helps manage money and is involved with the overall success in
achieving financial needs, goals, and will guide one to a better and more secure retirement. The
process of Financial Planning is: 1. Determine financial situation 2. Develop financial goals 3.
Identify alternative courses of action 4. Evaluate your alternatives 5. Create and implement your
financial plan 6. Review and revise your plan. (1)
Financial Planning Careers There are a number of financial service careers and two that are growing
and critical in the field of finance are becoming a Financial Adviser (FA) and Certified Financial
Planner (CFP®). An FA may have ... Show more content on Helpwriting.net ...
Broker/Dealer
Broker/dealer is a term used to describe an individual or company that is licensed to buy and sell
investment products for clients. Some large companies sell securities they own (dealers), while
others only buy and sell secuirities for investors (broker).
Chartered Financial Analyst® (CFA®)
CFAs are securities analysts, money managers and investment advisers who have completed the
CFA program. CFA® chartered holders are required to commit to high ethical standards just like a
CFP®.
Chartered Financial Consultant (ChFC)
ChFCs are financial professionals who have passed The American College's eight course education
program, met experience requirements and agreed to the code of ethics.
Fee–Based Financial Adviser
An Adviser who is compensated both by fees paid by the client and commissions that are contingent
on the purchase or sale of financial products.
Fee–Only Financial Adviser
An adviser who is compensated solely by the client, with neither the adviser nor any related party
receiving compensation that is contingent on the purchase or sale of financial products.
Financial (Securities) Analyst
These are professionals usually employed by investment institutions to conduct research and analyze
the value of securities and financial condition of a company, group of companies or industry sector.
Based on their analysis, analysts with make investment recommendation to buy, sell or hold a given
stock.
Investment Adviser
Investment advisers

The Sarbane-Oxley Act (SOA) Essay
INTRODUCTION
"The Public Company Accounting Reform and Investor Protection Act" was signed into law by
President Bush on July 30, 2002. The law is now known as The Sarbane–Oxley Act (SOA). The
SOA has eleven titles within the act and numerous sections, pertaining to ethics, accounting,
financial reporting, responsibilities of officers, whistleblower protection, and increased criminal
penalties built upon prior securities laws. SOA is the most comprehensive securities legislation
written since the 1940s. In the early part of the twentieth century companies did not have the
sophistication and abilities of the modern company in regard to information technology, number of
accountants, advisors and analysts. This legislation is a big step ... Show more content on
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All securities legislation can be found at: www.sec.gov/about/laws.shtml.
Sections 302, 304, 306, 402, 403 and 406 are designed to improve the ?Tone at the Top? of
companies. The sections are primarily geared towards the CFOs, CEOs and other company officers.
An example is under section 302; the CEO and CFO need to personally certify financial documents
pertaining to annual and quarterly reports. Section 304 forces management to return bonuses earned
if the financial documents were inaccurate as a result of misconduct. Section 306 states company
officers cannot trade during pension fund blackout periods. Section 402 prohibits insider loans.
Section 403 mandates electronic filing of insider transactions. In other words, if the CFO decides he
should sell his stock, the immediacy of the sale would have to be reported or filed with the SEC.
Section 406 forces a company to have a written code of ethics for the CEO, CFO and the staff.
www.sec.gov/news/press/2003–89a.htm. Further scrutiny of the legislation also reveals that section
1106 allows increased criminal penalties under the Securities Exchange Act of 1934, this changes
the maximum of 10 years to 20 years imprisonment and the $1,000,000.00 fine to a $5,000,000.00
fine. The tone of leadership is important for the wellness of an organization. As stated, ?Tone at the
Top? is a start, the leaders must be ethical and act accordingly

Research Paper On Current Affairs
Running head: CURRENT AFFAIRS RESEARCH PAPER 1 CURRENT AFFAIRS RESEARCH
PAPER 9 Current Affairs Research Paper Name: Institution Affiliation: Course: Date: Current
Affairs Research Paper (https://www.sec.gov/news/press–release/2017–147) Business practices need
to practice ethics of the highest order when carrying out the various business practices. Security and
investment Companies as organizations need to ensure that in every practice or engagement they
involve in, they get to deal with the clients and other parties with the highest integrity. Failure to
provide ethical practices and integrity in all one does lead to breaches of set laws, which govern the
operations of the company. Additionally, a company needs to ... Show more content on
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The Securities and Exchange Commission charged drake in the court of law for the malpractices he
had committed. The investment advisers' act of 1940 is the law that regulates the activities of the
securities, and additionally protects the interests of the clients (SEC.gov, 2013). Protection is
important since, there might be advisors, who may turn to be fraudulent and violate the terms of
agreements that were set in place. This law was put in place and since then, it has aided the
regulation of the individuals who take part in the business of carrying out the activities of advising
people on the investment matters, pension funds issues as well as other financial matters. The
interests of the advisors, in most times, might not be very well known, and in a bid to protect the
client, this law was put in place. It became a requirement that the people who engage in the
business, and all that get compensated as advisors, be registered and controlled by one body, the
securities exchange commission. The commission is therefore tasked with the process of ensuring
that the clients are treated well, as well as preventing any fraudulent activities from taking place.
Additionally, it should be responsible for the any situations that happen to the clients due to the
ignorance of the advisors, who fall under them There are antifraud provisions are provided under the
Investment Advisors Act and the Uniform Securities Act. The provisions prohibit the dealing of
clients in

Week Two Learning Team Reflection on Personal Liability
Law/531
October 2, 2012
Benefits to Commerce Team C colleagues decided on the following opinions in respect to the
advantages of commerce using shareholders and other entities for protection against personal
liability losses. Commerce is the buying and selling of goods or services within cities, states, and
globally. The legal structure of a business will establish the liable responsibilities of the business
owner. When a business is established as a Corporation or an LLC this structure separates business
owner's personal assets from the business debit and liability. The benefits of commerce acquiring ...
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Those with experience and know–how would simply remove themselves from management
responsibilities, creating a vacuum for less qualified individuals, increasing the potential for torts to
occur. Shareholders confidence would wane, stock markets would falter, and the economy would
suffer a financial meltdown. Team C members also concur that corporations have protection for their
shareholders regarding their personal information, but they do not hold the shareholders responsible
if the corporation goes bankrupt or shuts down. Shareholders are only responsible for the amount of
money they have invested in the company. Piercing the corporate veil is the doctrine stating that if
the shareholder uses the corporation improperly, the court of equity disregards the corporate entity.
The shareholder is personally liable for the corporation 's debts and obligations (Cheeseman, 2010).
This is also known as the alter ego doctrine because the corporation becomes the alter ego of the
shareholder. Still today sole proprietorships are the most popular form of starting a business and
having ownership. The definition is a business owned by one person and not incorporated with any
others. In the business world sole ownership is not separate and cannot be split apart from the
owners personal assets (Fairfax, 2011). The unincorporated business is exposed to unlimited
liabilities and loss of personal asset protection. In today's commerce environment having unlimited

Information Systems Strategic Planning Risk And...
BA531 Business Performance Management
Week 1 Assignment
Information Systems Strategic Planning Risk & Performance
David Nagus
Grantham University
Professor Duhn
Sept 3, 2015
1. State a simple definition of performance management.
Performance management is a process that provides feedback and accountability and also
documentation for performance outcomes. It is a forum to help employees channel their talents
toward organizational goals.
2. State the three major strategic choices facing firms.
Globalization, Competition, Out Sourcing
3. Explain the seven major forces which drive interest in performance management.
Economy:
a) Failure to explain the strategy: A reason for this failure is managers and employees cannot explain
the ... Show more content on Helpwriting.net ...
g) Broken budget process: Annual budget exercises are viewed as fiscal routines by accountants that
do not reflect future volume drivers.
4. Explain the relationship between performance management and value creation. is a process by
which managers and employees work together to plan, monitor and review an employee 's work
objectives and overall contribution to the organization. Value creation is the primary aim of any
business entity. Creating value for customers helps sell products and services, while creating value
for shareholders. The two tie together because the company wants to improve on their internal
processes and that includes having products or services that customers will buy and use and that is
the ultimate goal of an organization to create streaming revenues.
Read more: http://www.referenceforbusiness.com/management/Tr–Z/Value–
Creation.html#ixzz3kszAFSaP
5. State the four customer–facing trends which drive customer satisfaction.
Customer Service–This is the first contact a customer will have with a company basically the face of
the organization and if that fails everything else will too.

Improvement–Making sure the way things are done to continually improve the customers
experience
Act on findings–If there is an experience where a customer has a problem find the cause and fix it
Optimize–This means use existing resources or find other resources to

Social Changes In The United States During The 1920's
The roaring twenties were a time of dramatic social and political change for the United States.
During those years there was a big economic expansion, consumption and investment were growing
and the nation's total wealth doubled from 1920 to 1929. Definitely, it was a good time for the
United States, and many inventions such as the home refrigeration and penicillin drove the United
States into a new modern age. Nevertheless, these good times came to an end with the stock market
crash of October 1929. Consumption and investment decreased dramatically during the next years
and unemployment increased because companies were laying off workers. Almost 15 million
Americans were unemployed at that time in 1933, so it was the works economic crisis ... Show more
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The Nation was more concerned about the war and they were trying to build up a healthy post–war
economy. It was a hard time for the United States, as well as for many other countries. The number
of beneficiaries increased significantly from 222,000 at the end of 1940 to more than three million
in 1949 and the monthly benefits only grew from $22.60 in 1935 to $26 in 1940. The post–war era
was a hard time for the country, many people were unemployed and the purchasing power decreased
due to high inflation. At that time, the retirement benefits were not enough and that is the reason
why the Council encouraged a general benefit increase. The minimum benefit was doubled and there
was also an extension of coverage for other jobs, not only jobs in commerce and industry would
receive retirement benefits, but also farm and domestic workers. In 1948, one of the extension that
they did to the social insurance program was providing cash benefits to those people that were
permanently disabled. Benefits would be paid after six months' period to those with long lasting
disabilities. As we know, in order to be able to increase the general benefits there is a need to
finance it. For this reason, the 1950 amendments enlarged the contribution and benefit base. They
increased the annual wages that were subject to Social Security taxes and they

Extensible Business Reporting Language Analysis
Additionally, on March 1, 2017, the SEC voted to propose amendments relating to data submitted
using eXtensible Business Reporting Language ("XBRL"), in connection with the SEC's disclosure
modernization initiative. In a Fact Sheet accompanying its announcement, the SEC indicated that
the "proposed amendments would require the use of Inline XBRL format for the submission of
operating company financial statement information and mutual fund risk/return summaries. The
proposal would also eliminate the requirement for filers to post XBRL data on their websites." The
Fact Sheet indicates that the amendments would update SEC rules, adopted in 2009, requiring
mutual funds to submit risk/return summaries in XBRL to the SEC in Interactive Data File ... Show
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It is possible that any new obligations and associated costs could be significant. On April 7, 2017 the
DOL finalized a 60–day delay in the applicability date of the new fiduciary rule. On May 22, 2017
the DOL issued a New Temporary Enforcement Policy on the Fiduciary Rule, stating that "during
the phased implementation period ending on January 1, 2018, the [DOL] will not pursue claims
against fiduciaries who are working diligently and in good faith to comply with the fiduciary duty
rule and exemptions, or treat those fiduciaries as being in violation of the fiduciary duty rule and the
exemptions." On June 9, 2017 compliance with the Fiduciary Rule was generally required.
However, the day before, on June 8, 2017, the House of Representatives passed the Financial
CHOICE Act, which includes a provision to rescind the Fiduciary Rule, this Act is still pending in
the Senate, and analysts state that the Republicans will face a difficult task to gather enough votes to
pass the legislation. On July 3, 2017, the DOL filed an amicus brief in a case challenging the
fiduciary rule, in which the agency conceded that the portion of the BIC Exemption that would
require providers to waive contractually the ability to insist on arbitration and to consent to being
sued in a class action (in relevant part currently suspended) is invalid under other federal law. On
August 31, 2017, the DOL published a proposal to delay (from January 1, 2018 to July 1, 2019) the
applicability

Accounting Principles
In the U.S., Generally Accepted Accounting Principles are accounting rules used to prepare, present,
and report financial statements for a wide variety of entities, including publicly traded and privately
held companies, non–profit organizations, and governments. The term is usually confined to the
United States; hence it is commonly abbreviated as US GAAP or simply GAAP. However, in the
theoretical sense, Generally Accepted Accounting Principles encompass the entire industry of
accounting, and not only the United States. Outside the academic context, GAAP means US GAAP.
The following are basic objectives of the GAAP: provide information that is useful to present to
potential investors, creditors, and other individuals in making rational investment and credit, provide
information about economic resources, the claims to those resources, and the changes in them, assist
in making financial decisions, assist in making long term decisions, improve the performance of the
business, and maintain records. IFRS are used in many parts of the world, including the European
Union, India, Hong Kong, Australia, Malaysia, Pakistan, GCC countries, Russia, South Africa,
Singapore, and Turkey. As of August 2008, more than 113 countries around the world, including all
of Europe, currently require or permit IFRS reporting and 85 require IFRS reporting for all
domestic, listed companies according to the U.S. Securities and Exchange Commission. It is
generally expected that IFRS adoption

The Financial Crisis Of 2007
3.1 Background information In the words of Goodhart (2008), "the banking crisis of 2007 was seen
in advance" (Goodhart, 2008). This is a result of many different factors. To begin with, between
2001 and 2005, there were very low interest rates, particularly in China due to the Asian crisis of the
late 1990s. Because of this financial crisis, many people across Asia were saving instead of
investing their money. In order to encourage people to invest in the economy, the interest rates had
to plummet to make spending more affordable. Economies exist by trading with one another and if
one economy isn 't doing so well, this effects economies worldwide and the USA began to worry
about price deflation. During this period, developed countries ... Show more content on
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Professionals say the short–term rates were too low, pulling longer–term mortgage rates down with
them, Federals blame the savings glut in China. Putting aside who is to blame, the fact remains that
low interest rates were incentives for banks and hedge funds to seek riskier assets that offered higher
returns. As a result of the lower interest rates in America, the house market turned and pooling and
financial engineering backfired. This caused mortgage–backed securities to slump in value and as a
result, it became difficult to sell assets at any price or use them for short–term funding (The
Economist, 2013). 3.3 Impact on Northern Rock Northern Rock used the prioritisation of mortgages
to make a profit. January 2007 saw a £627m profit (The Economist, 2007) and they quickly grew to
own nearly 19% of the British mortgage market (Reed, 2007), however their heavy reliance on
wholesale funding made them vulnerable and the increased interest rates led to a slip in share prices.
Knowing this, Northern Rock still increased the dividend to its shareholders, although they were
running dangerously low on cash. This meant that they were promising returns that they didn 't have
the money to pay out. The directors of Northern Rock approached the Bank of England who said it
would be better to put the business up for sale, however, there were no investors to buy it so the
Central Bank had to offer emergency

Essay On The Role Of Stock Markets
The Role of Stock Markets According to Alfaro, Chanda, Kalemli–Ozcan, & Sayek (2004) stock
markets play a vital role as they allow investors to buy and sell shares in publicly traded companies.
They are one of the most vital areas of a market economy as they provide companies with access to
capital and investors with a slice of ownership in the company and the potential of gains based on
the company 's future performance. Stock markets generally reflect the economic conditions of an
economy, Alfaro, Chanda, Kalemli–Ozcan, & Sayek (2004). If an economy is growing then output
will be increasing and most firms should be experiencing increased profitability. This higher profit
makes the company shares more attractive – because they can give bigger dividends to shareholders.
If the economy is forecast to enter into a recession, then stock markets will generally fall. This is
because a recession means lower profits, less dividends and even the prospect of firms going
bankrupt, which would be bad news for shareholders. The Role of Over–the–counter Markets
According to Duffie, Gârleanu, & Pedersen (2005) over–the–counter (OTC) markets serve as a type
of secondary market also referred to as a dealer market (The secondary market is where investors
purchase securities or assets from other investors, rather than from issuing companies themselves).
This generally means that the stock are traded either on the over–the–counter bulletin board
(OTCBB) or the pink sheets .The

Hedge Funds : Hedge Fund Essay
Hedge funds, like mutual funds, searches for investors' money and then invest the money to make a
positive return. They typically are more flexible than mutual funds and seek more profit in different
types of markets by using leverage (borrowing to increase investment exposure). Hedge funds not
responsible for some of the regulations that are created to protect investors, unlike mutual funds.
Some hedge fund managers may sometimes not be required to register or file reports to the SEC but
they are responsible to the same prohibitions against fraud. The investors do not obtain most of
federal and state law protections that is usually applied to most mutual funds. For example, hedge
funds that are not required to give the same level of disclosure as mutual funds. Without this
disclosure, it will be harder to completely asses the terms of an investment in a hedge fund.
Hedge funds are responsible to the same trading reporting and record keeping requirements as other
investors in publicly traded securities. They are also responsible for additional restrictions and
regulations. That includes a limit on the number and types of investors that each fund may have.
They are restricted under a Regulation D which is under the Securities Act of 1933. Under that
regulation, hedge funds are restricted to rising capital only in non–public offerings only from
"accredited investors" and are restricted to individuals with a net worth minimum of $1,000,000 or
income minimum of $200,000 in each

DMBA620 Week 2 Fin Analysis Essay
Financial Accounting
Individual Assignment:
1) What 3 items of important information does the income statement reveal about the financial
performance of the company over the last three years?
Ans: The income statement lists the revenues minus expenses or costs of goods sold and operating
expenses and will reveal a net income or net loss (Revenues – Expenses = Net Profit or Net Loss).
Income statements show how much money a company made and spent over a period of time.
Income Statements cover a specified period of time usually annually or quarterly. An Income
Statement represents only one limited view of the companies' net profits or net loss after all
revenues are listed while expenses (costs) and taxes are subtracted. The Income ... Show more
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This is the source of the value of the company to its stockholders and to the stock market analyst
(Yahoo Finance, 2013). The Balance Sheet may also indicate a negative Shareholder Equity which
means the shareholders are losing money. The Balance Sheet also illustrates the trends in borrowing
the company has used in the last year. The long term debts that are listed on the balance sheet
compared to assets may indicate a problem if the debts are called in by the loaner for some
unforeseen reason. There are multiple methods or ratios for determining the future profitability of a
company indicated by the line items on the balance sheet (Mertz.J., 2000).
3) Can you identify the major sources of funding used by the company from the information
presented in the company's annual report? If not, how could you get this information? No, the
sources of funding are not listed specifically on the Financial Statements in the Annual Reports.
There is some research that would need to be done to find the specific sources of the funds. There
are however many stock owning entities that may indicate sources of funding if they stock owners
are banks or other types of lending institutions that could avail the company of

A Study on Mutual Funds of India
CHAPTER 1
INTRODUCTION
MEANING | A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these investments and
the capital appreciation realised are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. In other words, Mutual fund is a mechanism for pooling the resources by issuing
units to the investors and investing funds ... Show more content on Helpwriting.net ...
It includes swot analysis, products and services.Chapter IV : Conceptual study.This chapter gives a
detailed information on the various concepts of mutual funds, types of mutual funds, fund houses
operating in India,Chapter V :Data analysis.This chapter analyses and interprets the data collected
from the questionnaire.Chapter VI : Findings suggestions and conclusion.This chapter gives details
about the findings from the study, suggestions for improvement and the conclusion.CHAPTER
2INDUSTRYPROFILEORIGIN, GROWTH AND DEVELOPMENT OF THE MUTUAL FUND
INDUSTRYThe mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India.First Phase – 1964–87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978, UTI was de–linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first
scheme launched by UTI was Unit Scheme

Chapter 17 Mutual Funds and Hedge Funds
Chapter 17
1. Why are mutual funds popular with individual investors?
Able to enjoy economies of scale by incurring lower transaction costs and commissions. Provide
opportunities for small investors to invest in a liquid and diversified portfolio of financial securities.
2. What is the purpose of index funds? How does this differ from other equity mutual funds? Why
are index funds growing in popularity? Index funds are funds in which managers buy securities in
proportions similar to those included in a specified major index. Index funds involve little research
or management, which results in lower management fees and higher returns than actively managed
funds. Actively managed funds turn over their holdings rapidly.
3. How ... Show more content on Helpwriting.net ...
Insider Trading and Sec Fraud Enforcement Act of 1988– required mutual funds to develop
mechanisms and procedures to avoid insider trading abuses. Market Reform Act of 1990– allows the
SEC to introduce circuit breakers to halt trading on exchanges and restrict program trading when it
is deemed necessary. National Sec Market Improvement Act 1996– exempts mutual fund companies
from oversight by state securities regulators.
8. In what ways are hedge funds different from mutual funds?
Are not subject to heavy regulation that apply to mutual funds. Do not have to disclose their
activities to third parties. Because of less regulation, they use aggressive strategies that are
unavailable to mutual funds. Actual data cannot be individually tracked. Self–reported. Take
positions speculating that some prices will rise faster than others. Do not have to register with SEC.
They avoid regulation by limiting the number of investors to less than 100 and by requiring
investors to be accredited.
9. What are the primary differences between index funds and ETFs? What are two examples of
ETFs?
ETFs are traded on a stock exchange at prices that are determined by the market.Etfs can be traded
during the day, they can be purchased on margin and sold short by an investor. ETF investors can
defer capital gains as long as they

Features Of The Indian Financial Sector
Introduction:
The statistical material for the study and analysis of the property of corporate share by financial
institutions inside a framework of national accounts is much lesser and less solid than that accessible
data collected during the post–war time period. No Cash Flow statements or Fund Flow statements
exist for the period before the mid–1930's, and for the first decade for which they are available they
are not fully comparable to the present system. No balance sheets have been prepared during the
nineteenth century, and are found to be available only for a few benchmark years, that too only in
the 20th century.
With the available materials and pre–documented information, we may present the following
essential pictures and ... Show more content on Helpwriting.net ...
4. Fast rate of increase in the sales and usage of power driven machines.
5. India was also forced to become a raw materials supplier at the rates fixed by the Britishers.
Establishment of New Industries British Government threw the Indian market open to European
countries. Foreign capital began to flow only in the areas chosen by the British, in the areas which
they hoped would help them earn more profit. Industries such as Railways and Communication
industries attracted high amounts of foreign capital. Several industries such as cotton plantation,
paper, coal mining, iron & steel industries etc. were set up towards the beginning of 20th century.
The machinery that were being used Lancashire were forced upon Indian industries despite not
being suited to function in Indian climates and conditions. Industries in India were made to produce
what it was good in producing as well as those whose demands were high at that moment. Thus, a
lot of emphasis was given to Textile industry, Coal Production and Iron and Steel industry.
A brief review of the state and development of industries in India during the 20th century shows that
railways reached out from Calcutta, Bombay and Madras. Coal mines began to be seriously worked
in Bengal and Bihar. Cotton mills and Jute mills were set up in various parts of India. Serious
attempts were made to manufacture paper in India through machines, and this, the industrialization
proved to be

The Securities And Exchange Commission: Principal Federal...
The Securities and Exchange Commission (SEC) is an important factor to the principal federal
regulatory agency. it is an agency that regulates the securities industry. The main goal of the
Securities and Exchange Commission is to protect investors and maintain the integrity of the
securities markets. Numerous individuals rely on upon the SEC for regulating government securities
laws that ensure speculators. The SEC additionally guarantees that securities markets are reasonable
and fair and, if fundamental, authorizes securities laws through the proper approvals. Essentially, the
SEC directs the exercises of all members in the securities markets–including freely held enterprises,
open utilities, venture organizations and consultants, and securities ... Show more content on
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is the headquarters. The SEC divisions include Corporation Finance, Trading, and Markets,
investment Management, enforcement, Economic and Risk Analysis. The Corporation Finance
regulates the exposure made by open organizations, and the enrollment of exchanges, for example,
mergers, made by organizations. The division is additionally in charge of working EDGAR. The
Trading and Markets helps the Commission in executing its obligation regarding looking after
reasonable, organized, and proficient markets. Some of their obligations are completing the
Commission's budgetary respectability program for representative merchants, exploring proposed
new standards and proposed changes to existing guidelines documented by the SROs, helping the
Commission in setting up tenets and issuing translations on matters influencing the operation of the
securities advertises and surveilling the business sectors. The Division of Investment Management
offers the Commission in executing its commitment some assistance with regarding financial
specialists protection and for propelling capital course of action through oversight and regulation of
America's $26 trillion hypothesis organization industry. The Division of Enforcement helps the
Commission in prescribing to execute its law necessity limit the start of examinations of securities
law encroachment, by proposing that the Commission get normal exercises government court and

Business Development Companies ( Bdcs )
What Are BDCs?
Business Development Companies (BDCs) were created in 1980 to provide loans and aid to small
and mid–sized businesses finance their prospective enterprises. According to the Small Business
Administration, small business entities employ 50% of the private workforce space. financing,
through loans for small and medium–sized companies raises business capital for retail investors who
own shares. Prior to the existence of BDCs, the ability for smaller companies to raise capital were
minimal. With the emergence of BDCs, small businesses, which are the backbone of the economy,
are offered loans and incentives to promote growth, which in turn stimulates a strong market.
Why Makes BDC Different From Traditional Closed–End Funds? ... Show more content on
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Because there are fewer lenders in this investment market, these investments can earn higher yields
for smaller businesses. The debt is less liquid but the protections and regulations that are standard in
these loans offer a lower risk. Investors who wish to diversify their interest rate of exposure enjoy a
certain about of lower risk, higher yields, since BDCs portfolios carry fixed interest rates and
floating–rate securities. The industry average of floating rate securities is roughly 60% of total
assets, invest in them almost exclusively. These BDCs are lending at rates that will increase when
short–term interest rates climb, so they stand to profit from a rising rate environment. So in terms of
net of returns, the dividend yields for BDCs are most often greater than traditional closed–end
funds.
And Furthermore
Capital Structure In fulfilling their objective of providing capital to small and medium–sized US
businesses, BDCs can invest in a number of different types of securities, along a spectrum of
investments that includes debt and equity. This spectrum is known as a business's capital structure.
Typically, a BDC will invest primarily in one area of the capital structure, and so be identified as a
debt BDC or an equity BDC. Understanding the types of securities a BDC is purchasing will help
you and your advisor more accurately assess the risk profile of the investment and the yield it has
the potential to

Overview of the Securities and Exchange Commission
The Securities and Exchange Commission has the mission of protecting investors by maintaining
fair, orderly and efficient markets. The SEC does this in a number of ways, and firms need to pay
attention to these ways in order to ensure SEC compliance. The SEC has enforcement authority over
a number of areas related to the nation's capital markets, including insider trading, accounting fraud,
and providing false information. The SEC's jurisdiction extends to all securities that are traded
publicly. Privately–held companies do not need to register with the SEC (SEC.gov, 2012).
Any firms seeking to sell securities to the public needs to undergo the registration process, which
includes among other things providing a description of the company's properties and businesses, a
description of the security to be offered for sale, information about the management of the company
and financial statements that have been certified by independent accountants (SEC.gov, 2012).
There are a number of different reporting requirements that are needed to comply with the SEC.
These include the provision of financial statements on a quarterly basis (10–Q) along with an annual
report (10–K). These statements must adhere to a specific format that governs how financial
statements are prepared, and how the information is presented. There are many sections to these
forms that must be included. Moreover, the information must be accurate, and prepared to guidelines
laid out in the Generally Accepted

Investment Chap2
Chapter 2
Markets and Transactions
T Outline
Learning Goals
I. Securities Markets A) Types of Securities Markets 1. The Primary Market a. Going Public: The
IPO Process b. The Investment Banker's Role 2. Secondary Markets B) Organized Securities
Exchanges 1. The New York Stock Exchange a. Trading Activity b. Listing Policies 2. The
American Stock Exchange 3. Regional Stock Exchanges 4. Options Exchanges 5. Futures
Exchanges C) The Over–the–Counter Market 1. New Issues and Secondary Distributions 2. The
Role of Dealers 3. Nasdaq 4. Alternative Trading Systems D) General Market Conditions: Bull or
Bear Concepts in Review II. Globalization of Securities Markets A) Growing Importance of
International Markets B) International Investment ... Show more content on Helpwriting.net ...
A related issue is the existence of after–hours trading. In the next section, various regulations
applicable to brokers, investment advisors, and stock exchanges are described. The instructor need
not dwell on this section at length, however the instructor might want to bring in any recent
litigation or securities market trial that is being widely covered by the press. Ethical issues and
insider trading are interesting and serve to make a point about the challenges facing those attempting
to regulate the exchanges.
2.
3.
4.
5.
6.
Chapter 2
Markets and Transactions
19

7.
The text now moves to the different types of transactions, beginning with long purchases. The next
section deals extensively with margin trading, including the magnification of profits and losses,
initial and maintenance margin, and the formulas for their calculation. There are a number of review
problems and a case at the end of the chapter to aid the student in understanding the concept of
margin. The final section of the chapter deals with short selling, including the mechanics and uses of
short sales.
8.
T Answers to Concepts in Review
1. (a) In the money market, short–term securities such as CDs, T–bills, and banker's acceptances are
traded. Long–term securities such as stocks and bonds are traded in the capital markets. (b) A new
security is

Theu.s. Gaap And Ifrs
According to current literature, the global movement to adopt International Financial Reporting
Standards (IFRS) is the paramount financial reporting issue of the 21st century. More Than 100
countries in the world use IFRS as the basis of financial reporting.
The U.S adopted the idea of IFRS in 2002. Based on a proposed timetable developed by the U.S.
Securities and Exchange Commission, acceptance of IFRS is critically important to management
accountants, auditors, financial analysts, corporate executives, and others involved with financial
Reporting. In this paper, I am going to talk first about the differences between U.S. GAAP and
IFRS; then I am going to talk about the similarities between U.S. GAAP and IFRS; and finally I am
... Show more content on Helpwriting.net ...
On the other hand, the International Financial Reporting Standards (IFRS) also require that the
comparative information should be disclosed with respect to the previous period for all amounts
reported in the current period's financial statements. (.imanet.p,)
2. Layout of the balance sheet and income statement: This financial statement summarizes a
company 's assets, liabilities, and shareholders ' equitant in it period. These balance sheets give
investors an idea as to what the company owns and owes. The US GAAP didn't have a general
requirement to prepare the balance sheet and income statement in accordance with a specific layout,
on another hand, companies most present the detail in requirements in Regulation S–X (Regulation
S–X is a prescribed regulation that lays out the specific format and content of financial reports[1]).
It is cited as 17 C.F.R. Part 210; the name of the part is "Form and Content of and Requirements for
Financial Statements, Securities Act of 1933, Securities Exchange Act of 1934, Public Utility
Holding Company Act of 1935, Investment Company Act of 1940, Investment Advisers Act of
1940, and Energy Policy and Conservation Act of 1975". – ,) but International Financial Reporting
Standards (IFRS) does not prescribe a standard layout, but should include a list of minimum line
items. Those minimum line items are less prescriptive than the requirements in Regulation SX.
(ey.com/US/en/Issues/IFRS)

Sarbanes Oxley And Fraud Research Paper
Introduction Fraudulent behavior is an increasingly popular choice of lifestyle that everyday affects
the lives of millions, whether they are the perpetrator or the guiltless party – both expose themselves
to unwarranted future lifestyles. Undisclosed bonuses and salaries demonstrate the degree of
unfairness that exists behind closed doors. Today, this research paper will focus on the importance of
Sarbanes–Oxley and its lasting impact aiming to protect hundreds of thousands of entry–level
employees or any other type of employee facing the possibility of being a victim of fraud.
Background
The Great Depression unleashed as a serious threat in October1929 – the unfortunate day that the
stock market crashed. Further, it is known as one of the ... Show more content on Helpwriting.net ...
Patterson and J. Reed Smith, have distinctly observed that once under closely scrutiny, managers
inclined to commit fraud included certain weaknesses with their auditing plan. Fortunately, under
the Sarbanes–Oxley Act, managers can and in fact penalized for their choice of system control.
Moreover, dishonest managers chose a stronger system – this complicates the issue in its entirety as
it conveys to the auditor that he is honest. The most interesting aspect of audit risk under Sarbanes–
Oxley is: "Finally, audit risk, which is the probability of undetected fraud, goes up with Sarbanes–
Oxley, while expected fraud goes down" (Patterson and Read, 429). This implies that a certain
weakness exists within the boundaries of Sarbanes–Oxley, a weakness that may not necessarily be
easy to locate rather easier to

Summary Of Austin Pryor And 9 Disadvantages Of Investing
Cole Kliegl Ms. Kiera Ball ENG 101T 2–22–15 Are Mutual Funds Good Investments "20 MAJOR
ADVANTAGES OF INVESTING IN MUTUAL FUNDS" by Austin Pryor and "9 Disadvantages of
Investing in Mutual Funds" by InvestorGuide Staff both discuss whether or not mutual funds would
be worth investing in or not. The article by Austin Pryor is more convincing than the article by
InvestorGuide Staff because of the fact that Austin Pryor was able to list over twice as much
advantages to disadvantages and he also has more logic in his article when compared to
InvestorGuide Staff's articles. They both talk about whether or not Mutual Funds have to many
choices to be made. According to InvestorGuide staff's article it states: "However, there are over
10,000 mutual funds in operation, and these funds vary greatly according to investment objective,
size strategy, and style. Mutual funds are available for virtually every investment strategy (e.g.
value, growth), every sector (e.g. biotech, internet), and every country and region of the world. So
even the process of selecting a fund can be tedious" (Staff). This quote shows just how complex
investing in mutual funds can be for a person especial if he or she knows nothing about investing.
Now according to Austin Pryor in his article it says that there are advisors that are available to help
with making the choices with mutual funds (Pryor).Also there are a good amount of newsletters that
can advise someone in mutual funds (Pryor). One of the

Joy Morton Salt Transportation Essay
Transportation is one of the most important necessities for humans. Without it, traveling, economic
activity, and mobility would not be done as quickly or efficiently. Transportation is the act of
moving something from one place to another. We need transportation because of all life's necessities
and pleasures. The key to the salt business was transportation and luckily for Joy Morton, his
company was, "founded on a transportation idea"(Kurlansky pg.426). Morton was twenty four years
old when he began working for a small company in Chicago called E.I. Wheeler and Company in
1880. At such a young age, he had little money to invest in an idea. That did not stop him from
making an investment that changed his life. He took took the $10,000 he ... Show more content on
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The first several chapters in the first section of the book dealing with the procurement and use of salt
in the ancient world. The Chinese and the Egyptians were the first to use salt on a large scale. The
Egyptians collected evaporated salt from the sea and the Nile and they used the salt in their food as
well as an essential ingredient in preserving the body during mummification. The Chinese used
evaporated salt to salt fish and to create a condiment that we still use, soy sauce. It was the Romans,
though, with their fish based diet that really used salt extensively in their cuisine. The next several
chapters deal with the importance of salt in Christian Europe during the middle Ages and into the
Early Modern period. In Catholic Europe, the church had placed certain dietary restriction
forbidding meat on Fridays and church holidays. This created an enormous market for fish. Now,
having read this last chapter of Salt, I am very aware of how extensive the history of this commodity
is. One of the great underlying themes of Salt is the idea of how one little thing can make many
different big things. In fact, Salt can read as one long tale of unintended consequences. Throughout
history different people, rulers, inventors, ext. have tried to do one thing that lead to many different

Funds: Hedge and Mutual- Who and What They Are Essay
Funds: Hedge and Mutual– Who and What They Are Ever since their creation in 1949 by A. W.
Jones, hedge funds have been widely regarded as a unique and luring alternative to investing ones
money. Some have seen them as a replacement to the well–known mutual fund– while others
believe that they are an entirely new domain. Besides defining both the hedge fund and mutual fund,
this paper aims to expose the answer to a deeper question: Are hedge funds REALLY different than
a mutual fund, and if so, how and why? By comparing both financial intermediaries in the areas of
structure, strategy, and their respective environments, it is my hope that I can unmask any
uncertainties that may reside within these financial institutions. The most ... Show more content on
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Most importantly the act requires the disclosure of their financial condition and INVESTMENT
POLICIES when the stock is sold, and continually on a regular basis. On the other hand, hedge
funds are not registered, and are, as previously mentioned, private investment "pools." For the most
part they are exempt from the regulation by the SEC under the federal securities laws. Unlike many
of the limits imposed on mutual funds, hedge funds are granted a great deal of privacy. They aren't
required to disclose investing strategies, composition of their portfolios or performance besides what
the company willingly presents. Undoubtedly this allows hedge funds more of a decisive edge to
plan and implement further internal and external tactics to better optimize their institution. [Source:
IMF] In analyzing both hedge and mutual funds, is it also important to look at the advantages, and
implicit disadvantages, from the managers point of view, and not only the investors point of view.
One major difference that cannot be ignored is the difference in fees. In this category mutual funds
present a major disadvantage as they are allowed to impose only certain fees under the limitations of
specific guidelines. An example of this that federal law requires them to act out of a

The Securities and Exchange Commission
Morgan Bennett Mr. Harris History Honors– Per 5 April 2001 The Securities and Exchange
Commission In 1934 the Securities Exchange Act created the SEC (Securities and Exchange
Commission) in response to the stock market crash of 1929 and the Great Depression of the 1930s.
It was created to protect U.S. investors against malpractice in securities and financial markets. The
purpose of the SEC was and still is to carry out the mandates of the Securities Act of 1933: To
protect investors and maintain the integrity of the securities market by amending the current laws,
creating new laws and seeing to it that those laws are enforced. During the 1920s, approximately 20
million Americans took advantage of post–war prosperity by purchasing ... Show more content on
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There are six main laws that govern the Securities Industry, but only four that are relevant to the
majority of people. The first law is the Securities Act of 1933, which is often referred to as the "truth
in securities". The Security Act of 1933 has two basic objectives: to require investors to receive
significant information concerning securities being offered for public sale; and to prohibit deceit,
misrepresentation, and other fraud in the sale of securities. These two objectives are accomplished
primarily by registration which discloses important financial information. While the SEC requires
this information to be accurate, there is no guarantee that it will be. However, if investors purchase
securities and suffer losses due to the fact that the information given was incomplete or inaccurate
they have recovery rights. The registration process requires corporations to supply the essential facts
while minimizing the burden and expense of complying with the law. These requirements include a
description of the company's properties and the security to be offered for sale, information about the
management of the company and financial statements certified by independent accountants. If U.S.
domestic companies file this information, the statements are available on

Hedge Funds History
Hedge funds originated in the late 1940s, and they have been causing problems in the US economy
since then. Due to the fact that hedge funds basically function on loopholes in American laws, it
simply creates a way for the rich to become richer and the poor to become poorer. An example of
this is the way that hedge funds are structured to avoid regulation by the Securities and Exchange
Commission (SEC), the "federal regulator of securities markets" (Investopedia) in the United States.
Hedge funds are able to exempt themselves from the Investment Company Act of 1940, an act put in
place by the SEC that imposes limits on the use of certain investment techniques, by having "less
than 100 investors" (Fichtner 8) or making sure that investors are

Bernard Lawrence Madoff
Bernard Lawrence Madoff was a well–known, respected, and beloved name in Wall Street for many
years. But before the scandal and before the fame he was just an average American Joe. He was born
in Queens, New York, on April 29, 1938. (Biography, 2016) His father's name was Ralph Madoff
and mother was Sylvia Madoff. He also had a brother named Peter Madoff who would later play a
key role in his investment firm. Bernard grew up quite knowledgeable about finance and the stock
market after his mother started a brokerage firm from their own home. It was forced to close by the
SEC for failing to file financial reports. (Shea, 2009) In 1956, Bernard graduated from Far
Rockaway high school where he met Ruth who he would later marry. After graduating ... Show
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Individuals put their faith and trust into Bernard L. Madoff Investment Securities LLC. Clients not
only lost a vast majority of money that they perhaps may never get back but they also lost faith and
trust. Wealthy people invested their retirement earnings and their life savings into this company in
hopes of financial success and instead some clients got their hard earned money stolen for Madoff
own personal benefit. Matt Assad the author of the article titled "Madoff scam still cuts local
victims" speaks about a couple that invested millions of dollars into the company and how they were
affected. Michael De Vita one of the persons interviewed spoke on behalf of the situation and how it
made him feel. Michael states ""Well, I'm now 65, still working and I figure I have another 10 years
to go," the self–employed statistician said. "They can't recover 20–plus years of earnings. They can't
recover money that never existed. No one can be made whole." (De Vita, Assad 1). Thousands of
people are feeling the feeling of disappointment and despair that Michael and his wife have been
feeling for years. Madoff took almost 20 billion dollars from his clients and not even half of the
funds have been returned to the victims. We all work hard for our money, imagine having most of
what you worked for stolen? The invested victims of the ponzi scheme have truly suffered a lot
mentally, emotionally and

Final Project
As a financial manager three major decisions are to be made which are investment, financing, and
dividend decisions (Pujari, S 2015). When decisions are made in investments financial managers
carefully select fixed assets also known as capital budgeting decision or current assets in which
funds will be invested by the company (Pujari, S 2015). There are factors that affect the investment
and capital budgeting decisions such as cash flow of the project, return on investments, risks
involved, and investment criteria. For the cash flow of the project the company invests a huge
amount of funds in an investment proposal it is expected to sustain a regular amount of cash flow to
meet the daily requirements (Pujari, S 2015). The amount of cash ... Show more content on
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The payments of interest are a fixed liability of the company so the financial manager have to decide
what profit is left over for the company (Pujari, S 2015). The surplus profit is distributed to equity
shareholders as dividend or it is kept aside as retained earnings. Financial managers have to decide
how much to distributed as dividend and how much is needed to keep aside as retained earnings.
They take in consideration the growth plans and investment opportunities (Pujari, S 2015). There are
also affecting factors for dividend decision which the financial manager needs to analyze the factors
before dividing the net earnings between dividend and retained earnings. Earnings is an affecting
factor because dividends are paid out of the current and previous year's earning (Pujari, S 2015).
When a company experiences more earnings than the company has a high rate of dividends whereas
if the experience low earnings than the dividends are low as well. Stability of earnings is another
affecting factor because when a company has stable earnings they will give a higher rate of
dividends, but if a company has lower earnings the dividends will be lower as well (Pujari, S 2015).
Dividend decisions also has cash flow position factors where companies will declare a high rate of
dividends only when the company has surplus funds. In cases where the company has a cash
shortage they will also have low dividends (Pujari, S

Environmental Factors That Affect Global and Domestic...
Environmental factors that affect global and domestic marketing decisions
We analyze the financial company––U.S. Global Investors, Inc. which is foraying into the global
financial market. It is basically an investment management firm "specializing in gold, natural
resources, emerging markets and global infrastructure opportunities around the world." (U.S. Global
Investors, Inc, 2012) The Headquarter is at San Antonio, Texas, and manages the local funds and
funds for international clients.
1) Analyze the influence of global economic interdependence and the effect of trade practices and
agreements
Most financial companies have now begun to eye China, India and Brazil, which hold the finance
for 20 percent of the global economy and in future there will be 70 percent of total global GDP
growth from these countries. There are compacts between these countries and China and Indian have
opened markets globally owing to the international and US pressure after globalization. The need to
invest in these countries stem from the fact that Indian market is very lucrative especially with the
Forex and commodities. Likewise China has also opened up its financial markets and the investment
flow can be two way in future.
There are business laws and practices in these countries that have to be respected. For example one
of the considerations is advertising for the country specific market and wooing investors in the
business. The laws in India probate foreign companies directly investing

Notes On Mutual Fund Industry

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