Go to https://alexedmans.com/talks/ where you can find a list of Gresham Lectures given by Prof. Alex Edmans from LBS. Watch "5. Does Finance Benefit Society" and answer the following questions. The transcript (next to the "video" link) is helpful in understanding the materials covered in the video lecture. This assignment is due at the end of March 12^th (11:59pm) and will be graded as the HW7 on iLearn.

Answer the following questions in detail. Use numbers and quotes if necessary, to support your explanations. Keep in mind that Prof. Edmans often discusses problems via a UK perspective so think also how they affect the US market.

Q1. Provide one piece of evidence that the finance industry is growing at a staggering rate that attracts large attention from everyone.

Q2. Why is it a concern that overall companies pay investors more than they raise from investors?

Q3. What is a potential incentive for a CEO to buy back shares from the market?

Q4. What is the difference between primary and secondary financial markets?

Q5. What are the two key channels through which secondary trading can benefit society?