Question
Assignment questions for the Role of Capital Market Intermediaries in the Dot-Com Crash of 2000 1. List all the major players that play an intermediation
Assignment questions for the Role of Capital Market Intermediaries in the Dot-Com Crash of 2000 1. List all the major players that play an intermediation role between individual investors and entrepreneurs/managers. What is the intended function of each of the intermediaries? 2. How is each of the intermediaries you identified compensated for performing its respective function? Is the compensation arrangement likely to lead any dysfunctional incentives? 3. Identify the role each intermediary might have played in the creation of the dot-com bubble. Was this behavior related to the potential dysfunctional behavior identified in question 2? 4. How do you fix these problems?
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