Making decision through online information

Assignment Help Finance Basics

Reference no: EM1344298

Juan, a friend of yours, just inherited some money from his great-aunt and is trying to decide how to invest it. He has come up with some companies that he's interested in and has been doing a little research online. You meet for lunch, and while you're waiting for your order, you ask him how the research is going.

"It's amazing!" Juan exclaims. "Everything I need to know about the companies is right there online! It's great for me, but I don't know why the company goes to so much trouble."

What would you tell Juan about why the company makes this information available? What would you tell him about using the online information to make decisions? Suggest one response to each of these questions. Then, respond to another student's suggestions by playing devil's advocate - take the opposite position just for the sake of argument.

Reference no: EM1344298

Questions Cloud

Explaining risk in fixed-price contracts : It is recognized that fixed-price contracts offer obvious advantages to buyer organizations because they transfer almost all of the risk to the contractor.

Compare bonds to stocks in terms of raising capital : Why are bonds preferable to the traditional bank loan from viewpoint of dilution, amount to be borrowed, and threat of bankruptcy?

Monitoring the financial situation : What happen if financial projections based on incorrect data? For example, if your booked accounts receivable is significantly higher than actual accounts receivable & cash inflows, does your expense budgeting change?

Illustrate what set of procedures would you advise : As an advisor to the project manager, Derrick Westmuller, illustrate what set of procedures would you advise they adopt.

Making decision through online information : Juan, a friend of yours, just inherited some amount from his great-aunt & is trying to decide how to invest it. He has come up with some firms that he's interested in & has been doing a little research online.

Executive committee for alleviating it complexity : You are a consultant brought in by the executive committee to make recommendations for alleviating the "IT complexity" concerns of the executives at the company.

Explain the effect of price ceiling also price floor : Explain the effect of price ceiling also price floor with reference to the concept of price elasticity of demand.

Example-fairly priced securities : When securities are fairly priced, why would the original shareholders of the firm pay the present value of bankruptcy and financial distress costs?

Illustrate what is the real gdp in every year : illustrate what is the real GDP in every yr, given which the price index has risen from 100 to 104.5 in the 1st yr also up to 108.3 in the 2nd yr.

User Account

All Pages