Module Financial Markets

FIN 335 Milestone Three Guidelines and Rubric The final project for this course is the creation of a market analysis report that analyzes various organized global and domestic exchange markets and compares and contrasts performance for different investment products. In this milestone, you will submit a draft of Oversight and Governance (Section III) of the final project. You will explain how different markets are regulated, by which agencies, and how that might impact decisions on which market(s) to list in. Rules, regulations, and regulators of U.S. and international exchanges should be explored, which were discussed in Module Three. In addition, you will research listing in multiple markets and how interest rates may affect one market over another. Specifically, the following critical elements must be addressed:

III. Oversight and Governance. Use this section to explain how different markets are regulated, by which agencies, and how that might impact decisions on which market(s) to list in. You must address:

A. U.S. Exchanges. Select a major U.S. exchange(s) that the company you are reviewing could have considered in making its IPO listing decision. If the company is listed on a specific U.S. exchange, use that market. Be sure to answer:

1. What rules and regulations do companies wishing to list on this U.S. exchange need to follow and how might that affect listing decisions? Your answer should focus on basic entry and operation standards, including requirements for non-U.S. companies to trade on U.S. exchanges, citing relevant sources.

2. How are U.S. market regulations enforced and by which agencies? How might the costs of compliance and consequences of non- compliance have affected the company’s listing decision? Justify your response.

B. International Exchanges. Select a major non-U.S. exchange(s) that the company you selected could have considered in making its IPO listing decision. If the company is listed on a specific non-U.S. exchange, use that market. Specifically:

1. How can you determine the rules, regulations, and oversight bodies for this non-U.S. market? In other words, where would you look to find this information and how would you know to look there? Support your response with concrete examples.

2. What rules and regulations do companies wishing to list on this non-U.S. exchange need to follow and how is compliance enforced? How might those factors have affected the company’s decision? Your answer should focus on how basic market requirements and compliance mechanisms are (or are not) different than those for U.S. exchanges, citing relevant sources.

C. Multiple Markets. Analyze whether the selected company should or should not have considered listing its initial public offering (IPO) in more than one market. Justify your response. For example, can a company legally list in more than one market? If so, under what conditions? What are the risks and returns for attracting individual and corporate investors?

D. Interest. Analyze how interest rate policies and announcements affect returns and decisions about listing in the two markets you selected. Provide specific examples to illustrate your answer. For example, how are interest rates determined in U.S. versus non-U.S. markets? How do governments use interest rate decisions to try to influence the markets under different conditions?

Guidelines for Submission: Your paper must be submitted as a three- to four-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources cited in APA format.

Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value

Oversight: Rules Determines how rules and regulations for listing on U.S. exchanges affect listing decisions, focusing on basic entry and operation standards and citing relevant sources

Determines how rules and regulations for listing on U.S. exchanges affect listing decisions, but does not focus on basic entry and operation standards or cite relevant sources, or response contains inaccuracies or omits key details

Does not determine how rules and regulations for listing on U.S. exchanges affect listing decisions

15

Oversight: Enforced Determines how U.S. market compliance mechanisms, costs, and consequences might affect listing decision

Determines how U.S. market compliance mechanisms, costs, and consequences might affect listing decision, but response contains inaccuracies or omits key details

Does not determine how U.S. market compliance mechanisms, costs, and consequences might affect listing decision

15

Oversight: International:

Determine

Explains how to determine rules, regulations, and oversight bodies for non-U.S. markets, supporting response with concrete examples

Explains how to determine rules, regulations, and oversight bodies for non-U.S. markets, supporting response with examples, but response contains inaccuracies or omits key details, or examples are not relevant

Does not explain how to determine rules, regulations, and oversight bodies for non-U.S. markets, supporting response with examples

15

Oversight: International: Regulations

Determines how parameters for listing on non-U.S. exchanges affect listing decisions, focusing on how basic entry and operation standards are (or are not) different than for U.S. exchanges, citing relevant sources

Determines how parameters for listing on non-U.S. exchanges affect listing decisions, but does not focus on differences with U.S. exchanges (or lack thereof), cite relevant sources, or response contains inaccuracies or omits key details

Does not determine how parameters for listing on non-U.S. exchanges affect listing decisions

15

Oversight: Multiple Markets

Analyzes whether the company should or should not have considered listing its IPO in more than one market, justifying response

Analyzes whether the company should or should not have considered listing its IPO in more than one market, justifying response, but response contains inaccuracies, omits key details, or justification is illogical or irrelevant

Does not analyze whether the company should or should not have considered listing its IPO in more than one market

15

Oversight: Interest Analyzes how interest rate policies and announcements affect returns and decisions about listing in the two markets selected, providing specific examples to illustrate answer

Analyzes how interest rate policies and announcements affect returns and decisions about listing in the two markets selected, providing specific examples, but response contains inaccuracies or examples are not relevant

Does not analyze how interest rate policies and announcements affect returns and decisions about listing in two markets selected

15

Articulation of Response

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has multiple errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

10

Earned Total 100%