Purpose of the working group for financial markets

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Changing prices are a powerful signal to the market about particular companies. But the price discovery mechanism requires a freely traded market which is not manipulated by governments.

In March 1988 President Reagan signed an executive order that created the working group on financial markets. Its nickname is "the plunge protection team".

Research on the Internet and read the executive order that created the plunge protection team.

1. Which four people are on the Working Group for Financial Markets?

2. What is the purpose of the Working Group for Financial Markets?

What is your opinion of the "plunge protection team"?

How does its function undermine the price discovery mechanism of the stock market?

Reference no: EM132438404

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