Reply to this students discussion: In light of the Enron, Worldcom, option back
ID: 2743639 • Letter: R
Question
Reply to this students discussion:
In light of the Enron, Worldcom, option back dating, government bailouts/nationalizations and Madoff scandals, do you think U.S. equity markets are cleaner and more reliable than stock markets in the rest of the world? Cleaner i'd would argue they are due to the regulations that came about because of the scandals of the early 2000s. More reliable again it would depend on who you spoke to. According to this 2015 article, Jonathan Golub, market strategist, he gives 6 reasons why the U.S. stocks will outperform the G10 countries which include (France, Germany, Belgium, Italy, Japan, the Netherlands, Sweden, the United Kingdom, the United States and Canada, with Switzerland playing a minor role). The stock market fluctuates often and i would argue that i would need to study more foreign markets to truly determine if they operate on the same level.
Explanation / Answer
Ans: I would say that US market will return the better result reason being is that in the ra when Enron, World com had happened, they did not follow the proper accounting rules, they used the accounting's loopholes to paint the rosy picturef of their finnacials, but after that bubble alot hof ahs changed in US. The great feaures is Sebey Oxley law passed by US congress, that hhelp in preventing all the wrong doings in the coimpany and then convergence of accountings to IFRS hence we can say that coming ahead will be good for the US industry due to backing up of strong laws and regulations.