Making financial decisions

Assignment Help Finance Basics

Reference no: EM1344096

Jim Brock was an accountant with Hubbard Inc., a large corporation with stock that was publicly traded on the NYSE. One of Jim's duties was to manage the corporate reporting department, which was responsible for developing and issuing Hubbard's annual report. At the end of 2012, Hubbard closed its accounting records and initial calc. indicated a very profitable year. In fact, the net income exceeded the amount that have been projected during the year by the financial analysis who followed Hubbard's stock.

Jim was pleased with the companys financial performance. In January 2013, he suggested that his father buy Hubbards stock because he was sure the stock price would increase when the company announced its 2012 results. Jims father followed that advice and bought a block of stock at $25 per share.

Was anyone harmed by Brock's actions? Does it matter if Brock himself profited or if some other party purchased stock based on his knowledge? Do brokers and analysts receive information about the firm that is not available to the public? Doesn't everyone engage in insider information? If Brock decides he did act unethically, what action should he take to correct the situation? What company policies or procedures could be adopted to ensure that similar situations do not arise in the future?

Reference no: EM1344096

Questions Cloud

Illustrate what is the gini coefficient for this society : One has yearly income $10000, the other has yearly income $90000. Illustrate what is the Gini coefficient for this society.

How might you construct a measure of the change : How might you construct a measure of the change in the price level. Illustrate what additional information might you need to construct your measure.

Changes without any corresponding economic changes : Explain what features of accounting, if any, would make it costly for dishonest managers to make the same changes without any corresponding economic changes

Finding vertices of polygon stored in array-clockwise order : Assume that n ≥ 3 and the n vertices of P are stored in an array in clockwise order around P. Describe how to determine efficiently whether exactly one of the points q and r falls within P. Analyze the time for your algorithm.

Making financial decisions : Jim Brock was an accountant with Hubbard Company, a big company with stock that was publicly traded on the NYSE. One of Jim's duties was to manage the corporate reporting section.

Does either player have a dominant approach : Does either player have a dominant approach Does either have a dominated approach. Explain.

Difference in savings account balances at end of thirty year : Evaluate what is the difference in their savings account balances at the end of thirty years?

Which your cousin attended a nearby elementary school : Rise in the price reduce the quantity demanded, assuming price elasticity remains constant along the demand curve.

Explain the business process : Purchasing: Requisitions; Purchase Orders; Receiving, Inventory/WMS: Receive & put-away; miscellaneous transactions; Shelf Life Extension (SLEP); inventory transfers; import 3rd party

User Account

All Pages