Explain the difference in risk between "agency trading" and "proprietary trading," and why it is important to the Barings fiasco
What will be an ideal response?
Agency trading means executing orders on behalf of customers. Proprietary trading means executing trades on behalf of your own company. The difference is important for the Barings failure because Nick Leeson was supposed to be conducing mainly agency trading, but he was actually trading with Barings' capital.
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Lauren decides to use Twitter to market her hand-painted scarves to other women on her campus. She sets up a Twitter account with the name @uniquedesignsbylauren and posts this on her Facebook page, making sure to tweet every few days. Soon Lauren is selling a lot of scarves. Lauren's Twitter account is an example of
A. thought sharing. B. microblogging. C. professional networking. D. media sharing. E. social bookmarking.
Make a list of the factors common to the cultures of Enron, WorldCom and Tyco
As applied to bonds, duration refers to
A) the average maturity of a diversified portfolio of corporate bonds. B) the point in the life of a bond when its price risk exactly offsets its reinvestment risk. C) the average price and annual reinvestment rate of return for a bond. D) the point in the life of a bond when its yield-to-maturity equals its expected yield.
A sales representative enters the customer's account number and the system retrieves certain data about the customer from master data. This control plan addresses all of the control goals except:
A. ensure efficient employment of resources B. ensure effectiveness of operations (timeliness) C. ensure input accuracy D. ensure update completeness