Can ethics be legislated


Explain why the notes to a firm’s financial statements are an integral part of the company.  What kind of information is in this section?   Why should an average investor be sure to read them?Does paying an executive $1 per year but giving them stock options create an agency issue?  Why or why not?

Distinguish between each of the following pairs.What exactly makes them different?  Why?  Note: Do not cut and past your reply from the internet or the text or you will not receive credit.

  • Spot market and futures market
  • Option contract and futures contract
  • Primary market and secondary market
  • Can ethics be legislated?  What about SOX?  If it follows all applicable rules and regulations is a company ethical?

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Finance Basics: Can ethics be legislated
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