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

[VIDEO] How Regulators Are Investigating GameStop’s Stock Volatility

February 19, 2021

The recent frenzy surrounding GameStop stock caught even the most careful market observers by surprise as shares in the struggling retailer skyrocketed to unbelievable levels only to fall again soon after. This video looks at how regulators at the SEC are looking into the matter and the possible consequences that could fall on companies like Reddit and Robinhood.

Questions:

Why is the SEC investigating the recent stock market volatility surrounding GameStop and other companies?
Do you think federal regulators Continue reading →

Regulation, Stocks, GameStop, Stock Market, Coronavirus, Ethics, Pandemic

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Bonus Chapter A: Business Law, Bonus Chapter B: Technology and New Media

[VIDEO] How Options-Trading Redditors Fed the GameStop Frenzy

February 2, 2021

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Last week, GameStop stock shot through the roof as users on forums like Reddit bought up shares in droves after some hedge funds shorted the stock by as much as 240 percent. This video takes a look at how both professional and at-home options traders upended expectations for many market observers.

Questions:

Why did GameStop’s stock price skyrocket last week?
Do you think stock trading apps like RobinHood should have restricted users from buying shares in GameStop? Why or why not?

Entertainment, GameStop, Stock Market, Options trading, Economics, Volatility, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 19: Securities Markets, Videos

Rising Coronavirus Cases Leads to Stock Market Drop

October 27, 2020

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The stock market plunged in March as the coronavirus emerged in the U.S. but eventually recovered as some businesses reopened and consumers received economic relief. With cases once again on the rise, however, the combination of potential closings and a lack of another stimulus package caused the Dow to plummet by 650 points on Monday. “Financial markets are getting a reality check, as investors come to terms with the failure of Congress to agree to a pre-election stimulus package and Continue reading →

Dow Jones, Economics, Health, Global, Stock Market, Ethics, Coronavirus, Stimulus package

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

Big Companies Thrive as Small Businesses Scrape By

October 8, 2020

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According to the Brookings Institution, more than 400,000 small businesses have closed during the pandemic while hundreds of thousands more remain at high risk of ceasing operations. But while many small companies have struggled, large corporations in the tech and telecommunications industries have never been better. In fact, experts fear that big companies like Amazon and AT&T could consolidate on an enormous scale over the next six months as they buy bankrupt businesses at fire sale prices.

Although corporations have Continue reading →

Ethics, Antitrust Laws, Regulation, Federal Reserve, Global, Corporations

Chapter 1: Taking Risks and Making Profits, 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] How Private Companies Are Bypassing the IPO Process

October 2, 2020

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In the last few months, companies like the space tourism agency Virgin Galactic and the data-mining firm Palantir have debuted on the stock exchange without launching IPOs. This video looks at the pros and cons of the SPAC process that allows businesses to go public through so-called “blank check” companies.

Questions:

What are the advantages of taking a company public through a SPAC rather than a traditional IPO?
What are the potential drawbacks of SPACs compared to IPOs?

Entrepreneurship, Regulation, IPO, SEC, Stock Exchange, Ethics

Chapter 1: Taking Risks and Making Profits, Chapter 4: Ethics and Social Responsibility, Chapter 6: Entrepreneurship, Chapter 19: Securities Markets, Bonus Chapter A: Business Law

U.S. Billionaires Have Made $584 Billion During the Pandemic

June 30, 2020

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According to experts, the coronavirus pandemic has deepened economic inequality and expanded the racial wealth gap across the U.S. While the unemployment rate for white workers sits at 12.4 percent, the rate among black and Hispanic workers has gone up to 16.8% and 17.6% respectively. But while many poor Americans struggle to make ends meet, the wealth of the nation’s 614 billionaires has increased by $584 billion.

These top-end earners make most of their money on the stock market, which Continue reading →

Regulation, Health, Stock Market, Coronavirus, Ethics, Income Inequality, Unemployment

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 11: Human Resource Management, Chapter 19: Securities Markets

Uncertainty Abounds as States Reopen But Coronavirus Cases Rise

June 25, 2020

NickelsMcHughMcHugh

After months on lockdown, states across the country have relaxed stay-at-home orders and allowed businesses to gradually resume operations. This slight return to normalcy caused the stock market to rally over the last few weeks to levels approaching its January 2020 highs. But even though many Americans are desperate to return to something resembling normal life, coronavirus remains a dangerous threat to public health. In fact, cases of infection have been steadily rising as states and businesses reopen.

As a Continue reading →

Economics, Operations Management, Global, Regulation, Ethics, Health, Product Distribution, Recession, Stock Market, Coronavirus

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 15: Distribution, Chapter 19: Securities Markets, Bonus Chapter A: Business Law

Nintendo Cuts Interest Rates in Animal Crossing: New Horizons

April 24, 2020

NickelsMcHughMcHugh

For nearly two months, millions of Americans have been shut inside their homes in an effort to curb the spread of coronavirus. Many people have turned to video games as a way to pass the time, and one of the most popular titles of the last few weeks has been Animal Crossing: New Horizons. Players of the Nintendo Switch title move into their own island where they work and hunt for treasure all in an effort to buy things Continue reading →

Entertainment, Pricing, Economics, Product Distribution, Financial Management, Video Games, Federal Reserve, Banks, Interest Rates, Stock Market

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 4: Ethics and Social Responsibility, Chapter 14: Product and Price, Chapter 15: Distribution, Chapter 19: Securities Markets, Chapter 20: Money and Financial Institutions

Dow Jones Drops by Nearly 3,000 Points in One Day

March 17, 2020

NickelsMcHughMcHugh

Fears over the spread of coronavirus have upended daily life for millions of Americans and countless businesses. The CDC has recommended that organizations cancel any events with 50 or more people, and restaurants around the country are either switching to take-out only or closing entirely. As a result of the uncertainty surrounding this health crisis, financial markets around the globe are experiencing near-record drops in value. In fact, on Monday the Dow Jones Industrial Average plummeted by about 3,000 points, Continue reading →

Human Resources, Stocks, Health, Crisis management, Coronavirus, Economics, Operations Management, Global, Regulation, Ethics, Dow Jones

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 7: Management & Leadership, Chapter 9: Production and Operations Management, Chapter 11: Human Resource Management, Chapter 19: Securities Markets

Global Stocks Plummet Amid Coronavirus Fears

February 28, 2020

NickelsMcHughMcHugh

Stock markets around the world have been falling dramatically all week due to fears surrounding the spread of the coronavirus. If global exchanges continue with this cycle of massive selloffs today, then the past week could represent the biggest stock market drop since the height of the 2008 financial crisis. And it’s not looking too good so far: “We’re drinking from a fireman’s hose this morning,” said Patrick Spencer, managing director at the investment firm Baird. “It wasn’t a good Continue reading →

China, Economics, Supply chains, Operations Management, Health, Global, Travel, Stock Market, Coronavirus

Chapter 1: Taking Risks and Making Profits, Chapter 2: Economics, Chapter 3: Globalization, Chapter 4: Ethics and Social Responsibility, Chapter 9: Production and Operations Management, Chapter 19: Securities Markets, Bonus Chapter A: Business Law