Chapter 19: Securities Markets - McGraw-Hill Introduction to Business

Unimpressive Instacart Debut Decreases Confidence in IPOs

September 22, 2023

For years, going public on the New York Stock Exchange or Nasdaq was the culmination of a longtime dream for many companies. After all, initial public offerings (IPOs) gave stakeholders a good chance to get rich quick while also bringing in new capital to expand their businesses even further. Unfortunately, this has not been the case for the last 18 months as rising inflation and growing economic uncertainty has created a poor environment for IPOs. In recent weeks, though, several Continue reading →

Regulation, Global, Interest Rates, Ethics, IPO, Inflation, Stock Exchange, Instacart

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 5: Forms of Business Ownership, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law

[VIDEO] Why Sweetgreen Struggles to Earn a Profit

September 20, 2023

NickelsMcHughMcHugh

The fast-casual dining chain Sweetgreen has developed a nationwide following of fans by selling fresh salads that start at $15 apiece. Although the company certainly charges a hefty amount for one of its signature bowls, Sweetgreen still struggles to make a profit due to high labor costs and expensive ingredients. This video examines the chain’s money troubles while also looking at its plans for profitability, including automation and expanding outside of major cities.

Questions:

What are some reasons why Sweetgreen Continue reading →

[VIDEO] Why Hitting the Debt Ceiling Would Be ‘Catastrophic’

May 11, 2023

NickelsMcHughMcHugh

Lawmakers are once again butting heads about raising the debt ceiling, a limit on the total amount of money that the federal government is authorized to borrow. This video looks at the potential economic consequences that could follow if legislators fail to reach an agreement and default on the nation’s debt.

Questions:

How does debt help drive the U.S. economy?
Why are U.S. bonds traditionally seen as reliable investments? How could that change if the country defaults on its debt?

Federal Reserve, Bonds, Securities, Regulation, Economics, Debt ceiling, Global, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

[VIDEO] Apple vs. Banks: The Digital-Wallet War

April 13, 2023

NickelsMcHughMcHugh

Since launching its digital payment system in 2014, Apple has steadily increased its market share in a space traditionally dominated by big banks. This video looks at how Apple Pay has frightened Wall Street stalwarts like JPMorgan Chase and caused financial institutions to expand their own digital payment efforts in order to compete.

Questions:

What advantages and disadvantages does Apple Pay have compared to traditional financial firms?
Do you prefer to pay with cards or digital platforms like Apple Pay?

Finance, Credit Cards, Wall Street, Apple, Silicon Valley, Digital payments, Apple Pay, Debit cards, Currency

Chapter 1: Taking Risks and Making Profits, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Videos

[VIDEO] How the FDIC Insures Customers’ Deposits

March 24, 2023

NickelsMcHughMcHugh

The Federal Deposit Insurance Corporation (FDIC) does not get much attention unless something goes drastically wrong in the financial world, such as the recent collapse of Silicon Valley Bank (SVB). This video explains how the organization covers customers’ deposits in order to prevent bank runs, and how the fall of SVB presented the FDIC with some unique challenges.

Questions:

Why was the FDIC formed, and how does it protect customers’ deposits?
How did the FDIC’s handling of the SVB collapse Continue reading →

Financial Crisis, Ethics, Stock Market, FDIC, SVB, Bailout, Regulation, Economics, Federal Reserve, Securities Markets

Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Bonus Chapter A: Business Law, Videos

[VIDEO] How SVB Collapsed in 36 Hours

March 16, 2023

NickelsMcHughMcHugh

The video below provides an in-depth look at Silicon Valley Bank’s downfall, from its heavy investments in bonds to the bank run that has sent shockwaves through the market. (For more information on investigations into potential misconduct at SVB, check out this video.)

Questions:

How did SVB’s substantial investments in bonds backfire on the bank?
Do you think federal regulators should place limits on how much money banks like SVB can invest? Why or why not?

Banking, Regulation, Federal Reserve, Ethics, Supply & Demand, Stock markets, FDIC, Financial collapse

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions, Videos

FDIC Intervenes after Silicon Valley Bank Failure

March 14, 2023

NickelsMcHughMcHugh

Last Friday, a combination of imprudent decision-making and panicked customers led to the collapse of Silicon Valley Bank (SVB), a 40-year-old financial institution based in Santa Clara, California. The Federal Deposit Insurance Corporation (FDIC) stepped in to prevent further fallout, putting nearly $175 billion in customer deposits under the regulator’s control. SVB’s meltdown represents the second largest bank failure in U.S. history, and the largest one since the 2008 financial crisis. As a result of this chaotic situation, stock prices Continue reading →

Federal Reserve, Supply & Demand, Ethics, Stock markets, FDIC, Financial collapse, Banking, Regulation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 18: Financial Management, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

[VIDEO] How Commodity Markets Work

March 3, 2023

NickelsMcHughMcHugh

Florida’s orange crop is shrinking year after year, sending commodity prices skyrocketing for orange juice concentrate. This video examines the intricacies of commodity markets through the lens of concentrated OJ, looking at concepts like futures contracts and how they affect both farmers and retailers.

Questions:

Why has Florida’s plummeting orange production caused juice prices to increase significantly?
What are the benefits of futures contracts for farmers and manufacturers?

Supply & Demand, Retail, Pricing, Product Distribution, Operations Management, Agriculture, Commodities, Food & Drink

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 9: Production and Operations Management, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Videos

Inflation Fears Sink Stocks to Lowest Point in 2023

March 1, 2023

NickelsMcHughMcHugh

Last Friday, the stock market tumbled to its lowest point so far this year, with the S&P 500 falling for three weeks straight while the Dow Jones similarly slumped due to disappointing economic data. Investors expected inflation to decline more at the start of 2023, but experts say that it has actually re-accelerated in recent months. As a result, the Federal Reserve may continue to raise interest rates, a measure used to combat inflation that reduces the amount of Continue reading →

Regulation, Federal Reserve, Recession, Interest Rates, Securities Markets, Supply & Demand, Global, Stock Market, Inflation, Stock valuation

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

The Dollar Soars as Global Currencies Struggle

July 22, 2022

NickelsMcHughMcHugh

The U.S. dollar is the world’s most important currency, serving as one side of 90 percent of all foreign exchange transactions. Before the pandemic, the U.S. dollar accounted for $6 trillion in daily activity as everyone from tourists to multinational corporations depended on this customarily stable currency. After the turmoil of the last few years, however, the dependable dollar has skyrocketed in value to its highest level in 20 years.

The value of the dollar has jumped 10 percent Continue reading →

Supply & Demand, Global, Inflation, Ethics, Bonds, Currency, Federal Reserve

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions