What role do primary financial markets play in the current economy? What role do secondary markets fill? Describe the relationship between financial institutions and financial markets and suggest a method by which this relationship could run smoother. Support your rationale with at least one citation from the literature.
What does it mean to say that managers should maximize shareholders’ wealth “subject to ethical constraints”? What ethical considerations might factor into decisions that result in lower cash flow and stock price effects than they might have otherwise been valued?