Group+Projects


 * CHAPTER 11: ESSENTIAL QUESTIONS**

1. Compare and contrast the annual reports from two rival companies. What are the similarities that you see? In the letters from the CEO what type of language do the CEO's use? What phrases indicate to you that the company's performance will increase or decrease? Which stock would you advise be bought?

2. Speculation is taking risk in markets looking for large short-term gains as opposed to investing. A number of speculators have made it big and a number have failed greatly. Pick one of the following speculator flops and present their bio and history to the class along with what happened to them: Jerome Keviel, Nick Leeson, James Dooley.

3. Commodity trading is considered to be one of the riskiest speculative ventures. Fortunes are made in lost in minutes in these markets. A previous group has studied famous failures in terms of trading. Some made it big usually after a few setbacks. Profile two of the following for the class: Jesse Livermore, Paul Tudor Jones, George Soros.

4. Equities are often an attractive investment due to their long term performance. There have been a few major drawbacks called recessions or depressions. Explain the origins and causes of one of the following: the great depression, the tech bubble burst, or the asian financial crisis. Share your findings with the class.*

5. Occasionally speculative bubbles exist. In the past few hundred years there have been some interesting events. Provide some background and summaries related to these two bubbles: the Dutch tulip bubble, and the English south seas bubble.*


 * CHAPTER 12: ESSENTIAL QUESTIONS**

6. Besides publicly traded companies a number of corporations are private. Identify the top three private corporations in the world in terms of revenue and size. In general what industries are these corporations active in? What are the pros and cons of being a privately held corporation?*

7. There are many different sectors of the stock market that one can invest in. Identify cyclical stocks that benefit from periods of war? What are the pros and cons of owning war stocks? Are there any moral hazards involved with investing in these companies? Some funds market themselves as socially responsible in terms of the investments they make. Do these funds purchase war stocks? In which types of stocks do the invest and which do they avoid?

8. Many publicly traded corporations pay taxes in terms of corporate income tax. Explain the origin of this tax and how it works. How does this tax compare to other corporate income taxes around the world? Note (and explain) the relationship between foreign corporate income tax and personal income tax. As a legislator what policies would you advocate for in terms of corporate income tax (keeping in mind the ripple effects of your decisions)?

9. Often times our government is accused of intervening globally to protect Western corporate interests. One standard case is that of United Fruit. Study the history of United Fruit and the U.S. government. Share your findings with the class. What type of foreign policy changes would you support?

10. One of the selling features of investing in the stock market is the possibility of gaining dividends. Presuming you wanted to have a retirement income of $30,000 a year from dividends and you begin investing at the age of 30. Which stocks would you recommend. Using a drip how much would you have to buy each month to begin drawing $30,000 a year in dividends at the age of 65?*