Description
Directions: Read pages 87-112 in the Desai textbook and answer the following.1. Consider the “who’s who” of capital markets by briefly explaining how each of the following entities influences the information process: a) the equity research analyst; b) the companies; c) the buy side; d) the sell side; and e) the media. (pp. 87-102)2. Describe the process of diversification and explain why it is a recommended approach. (pp. 91-92)3. Distinguish between “going long” and “going short” on stocks. Which approach seems riskier, and why? (pp. 93-97)4. Define asymmetric information and describe two reasons why it is problematic. (pp. 100-103)
