The box on page 11 describes the controversial involvement of Goldman Sachs in a mortgage backed securities

Question:

The box on page 11 describes the controversial involvement of Goldman Sachs in a mortgage backed securities deal in 2006. When this involvement was revealed, the market value of Goldman Sachs' fell overnight by $10 billion. This was far more than any fine that might have been imposed. Explain.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...