Topic - Week 4 - Discussion Forum 1

11/16/22, 5:52 AM Topic: Week 4 - Discussion Forum 1
This is a graded discussion: 1.5 points possible

due Nov 17
Week 4 - Discussion Forum 1 5 5
Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to
respond to your classmates. Your grade will reflect both the quality of your initial post and the depth
of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for
guidance on how your discussion will be evaluated.
Capital Markets [WLO: 1] [CLOs: 1, 2, 4] Twitter
Prior to beginning work on this discussion These Twitter feeds are being provided as supplemental
forum, read Chapter 14 in the Foundations of information and as a way to stay up-to-date on any
Financial Management textbook. current events happening in the field. Be sure to meet
all the discussion question requirements and use these
Initial Response:
feeds for any additional information only.
For this discussion forum,
@markets
Discuss the evolution of the securities
markets, including the impact of the
NASDAQ, CME, ECNs, and foreign
markets
exchanges.
Explain the role of securities markets in the
Bloomberg Markets @markets
efficient allocation of capital among issuers
A US recession is highly likely in the next
and investors based on the efficient market months: Here's why the author doesn’t sh
hypothesis. Fed’s optimism https://t.co/7TkyTcUgD3
Evaluate if the presence of dark pools
enhances or reduces capital market
efficiency.
WATCH: Trump entered the 2024 US pre
Finally, find a real-life company that has
race on Tuesday, making official what he’
made raised capital in 2020 and discuss teasing for months ju… https://t.co/zc0f1V
the method used. If possible, try to select a
company that a fellow student has not
already selected.
WATCH LIVE: Action-planning for the glo
https://ashford.instructure.com/courses/109439/discussion_topics/3036535 1/10
Your initial response should be a minimum of @DaveRamsey

200 words. Graduate school students need to
learn how to assess the perspectives of
several scholars. Support your response with
DaveRamsey
at least one scholarly and/or credible resource
in addition to the text.
Dave Ramsey @DaveRamsey
Guided Response: Respond to at least two of "Where there is no vision, the people per
your fellow students’ or instructor posts in a Proverbs 29:18
If people don't intentional
their future,… https://t.co/NBiKIzmOwB
substantive manner and provide information or
concepts that they may not have considered.
Each response should have a minimum of 100 Dave Ramsey @DaveRamsey
words and be respectful of others’ opinions Taking on a car payment is one of the dum
and beliefs that differ from your own. Support things people do to destroy their chances
building wealth. If yo… https://t.co/OOcijc
your position by using information from the
week’s readings. You are encouraged to post
your required replies earlier in the week to Dave Ramsey @DaveRamsey
promote more meaningful and interactive “In the house of the wise are stores of ch
discourse in this discussion forum. Continue to
monitor the discussion forum until Day 7 and
respond with robust dialogue to anyone who
replies to your initial post.
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(https:// Valerie Vann (https://ashford.instructure.com/courses/109439/users/6028) 
Nov 8, 2022
Discussion 4-1:
Class,
Prior to beginning work on this discussion forum, read Chapter 14 in the Foundations of

Financial Management textbook.
Initial Response:
For this discussion forum,
Discuss the evolution of the securities markets, including the impact of the NASDAQ, CME,
ECNs, and foreign exchanges.
Explain the role of securities markets in the efficient allocation of capital among issuers and
investors based on the efficient market hypothesis.
Evaluate if the presence of dark pools enhances or reduces capital market efficiency.
Finally, find a real-life company that has made raised capital in 2020 and discuss the
method used. If possible, try to select a company that a fellow student has not already
selected.
Your initial response should be a minimum of 200 words. Graduate school students need to
learn how to assess the perspectives of several scholars. Support your response with at least
one scholarly and/or credible resource in addition to the text.
Dr. V.
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Reply
(https:// Kristin Ashby 
(https://ashford.instructure.com/courses/109439/users/271460)
Sunday
Securities markets evolved from the necessity to seal commodity prices at current values.
The Chicago Merchantile Exchange (CME) was the first exchange that allowed buyers to lock
in prices and suppliers to plan for the anticipated demand, creating the futures market (Block,
2022). NASDAQ is an electronic marketplace that trades corporate common stock allowing
corporations to finance new endeavors using public investors easily. Electronic
Communication Networks (ECNs) have allowed exchanges to evolve, matching buyers to
sellers for specific securities or commodities. Foreign Exchanges trade enables global
corporations to finance international growth.
The efficient market hypothesis revolves around how much information impacts the price of
a security. Stocks are categorized as weak, semistrong, or firm. 'Weak' means that additional
information has not impact on the price of the stock. While 'semistrong' acknowledges public
information is impacting the price. 'Strong' refers to how public and private information has
impacted the pricing. While private information will have the most impact on the stock price, it
is also subject to insider trading conflicts. As technology increases, more information is

available, allowing stock prices to react more quickly than in the past. Professional investors
use dark pools to gain an unfair advantage over public traders by eliminating transparency.
In 2020, Tesla had two rounds of common stock disbursement. The second, in December
2020, raised nearly $5 billion (Wayland, M., 2020). CEO Elon Musk anticipated raising enough
capital to reduce debt and build additional gigafactories. Macrotrends (n.d.) shows the year-
over-year stock issue increase by 22.1% during 2020.
Block, Stanley. Foundations of Financial Management. Available from: University of Arizona

Global Campus, (18th Edition). McGraw-Hill Higher Education (US), 2022.
Macrotrends. (n.d.). Tesla Shares Outstanding 2010-2022.

https://www.macrotrends.net/stocks/charts/TSLA/tesla/shares-outstanding
Wayland, M. (2020, Dec 8). tesla to raise up to $5 billionin share offereing, its second in three
months. CNBC. https://www.cnbc.com/2020/12/08/tesla-to-raise-up-to-5-billion-in-share-
offering.html
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(https:// Wendy Moore 
Monday
Discuss the evolution of the securities markets, including the impact of the NASDAQ,
CME, ECNs, and foreign exchanges.
The Middle Ages used stock exchanges to trade in agriculture and other commodities
(Britannica, n.d.). The first U.S. stock exchange was in Philadelphia in 1791; the New York
exchange was created in 1792. The Securities act was created in 1933 regarding the new-
issue market and the Securities Exchange Act of 1934, which is directed toward the trading
market. The Securities Exchange Act of 1934 requires every stock exchange to register with
the Securities and Exchange Commission (SEC). “The markets are influenced by many
variables such as interest rates, exchange rates, investors’ confidence, economic growth,
global crises, and more” (Block, 2022). The markets include NASDAQ, CME, ECNs, and
foreign exchanges.
Explain the role of securities markets in the efficient allocation of capital among issuers
and investors based on the efficient market hypothesis.
When stock markets are efficient, it is hard for investors to select stocks that can outperform.
The efficient market hypothesis is stated in three forms: the weak, semistrong, and strong.
The dark pools pricing and size of orders are not available to other traders or to the public.
They lack transparency due to being hidden from participants and take liquidity out of the
public markets.
method used.
Rivian raised 2.65 billion in 2020. They had major companies invest after revealing their new
electric truck and SUV. Including $500 million from Ford, and $350 million from Cox
Automotive.
References
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial management (18th
ed.). McGraw-Hill Higher Education.
Britannica (n.d.) The development of securities trading. Retrieved from:

https://www.britannica.com/topic/security-business-economics/The-development-of-
securities-trading
(https://www.britannica.com/topic/security-business-economics/The-
development-of-securities-trading)
Korosec, K. (2021). Rivian raises $2.65B as it pushes toward production of its electric pickup.
Retrieved from: https://techcrunch.com/2021/01/19/rivian-raises-2-65-billion-in-new-
capital-as-it-pushes-towards-production-of-its-electric-
pickup/#:~:text=The%20stream%20of%20capital%20didn,Rowe%20Price%20Associates
%20Inc
(https://techcrunch.com/2021/01/19/rivian-raises-2-65-billion-in-new-capital-as-it-
pushes-towards-production-of-its-electric-
pickup/#:~:text=The%20stream%20of%20capital%20didn,Rowe%20Price%20Associates%20Inc)
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Reply
(https:// Michelle Brown Berry 
Monday
Discuss the evolution of the securities markets, including the impact of the NASDAQ,
CME, ECNs, and foreign exchanges.
Security markets can be in short-term and long-term markets. With short-terms markets are
being less than a year, they are often referred to as money markets. The long-term markets, or
capital markets, are securities that are longer than one year. Block et al (2022) noted the “most
common corporate securities are bonds, common stock, preferred stock and convertible
securities” (Block et al, 2022, Ch. 14, pg. 449) The increase of international capital markets
increased due to important economic trends in the last few decades. Those economic trends,
include: the increase of capitalism throughout the world’s economies, continuing development
of “free trade” with the 1994 NAFTA, North American Free Trade Agreement being established
between Mexico, Canada, and the United States, it allowed for more trade with those three
countries, reduced telecommunication costs, and international trade increased. (Block et al,
2022, Ch. 14, pg. 451) All of these will improve the capital markets in the world and utilize free
trade for companies to raise debt and equity capital at reduced costs.
Explain the role of securities markets in the efficient allocation of capital among issuers
and investors based on the efficient market hypothesis.
Capital markets have different functional components with each one having their own specific
market that serves a specific type of security. The common stocks of large corporations that
are traded on the NASDAQ and New York Stock Exchange by government securities dealers.
Based upon market efficiencies based upon which market is involved. Block et al (2022) noted
that “markets are efficient when price adjust rapidly to new information, there is a continuous
market that each successive trade is made aa a price close to previous price, and that the
market can absorb large dollar amounts of securities without destabilizing the prices” (Block et
al, 2022, Ch. 14, pg. 464) The efficiency with the market needs to be that income is imperative
to its efficiency. The efficient market hypothesis is known in three forms: strong, semi-strong,
and weak. With communication systems being so advanced, there is less ways that the
information can be incorrect.
Dark pools cause a question of unethical business practices. Organizations need to do the
right thing for their customers and the organization. With the business of stock trading for their
clients, businesses such as Goldman Sachs, need to make sure that they are ethical when
doing financial business dealings for their customers. With trading operations being monitored
by the SEC, it is imperative to make sure that their practices and procedures are followed and
behaviors by their employees will not lose customer’s money. Global Banking News (2014)
noted “losses by big investors could lead to trading less, reducing a business’s volume, and
crimping revenue” (Global Banking News, 2014)
method used. If possible, try to select a company that a fellow student has not already
selected.
Chime Solutions, a Georgia-based provider of customer contact services, has recently closed
on a $ 30M recapitalizations investment with BBH Capital Partners. Chime is looking to have a
financial partnership that will help them with future growth of the organization. Through this
partnership, BBH will assist them by providing much needed capital to help with creating
business solutions that use their outsourcing solutions. Global Banking News (2020) noted
“Chime Solutions hopes that this capital raise will support Chime’s business process
outsourcing solutions and its mission of creating economic and social impacts in underserved
communities across the country” (Global Banking News, 2020).
References:
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial

management (18th ed.)
(https://ashford.instructure.com/courses/109439/modules/items/5560819) . McGraw-Hill Higher
Education.
Chime Solutions closes on a USD 30m investment with BBH Capital. (2020). Global Banking
News (GBN).
Goldman Sachs to expand stock trading business. (2014). Global Banking News (GBN).

Reply
(https:// Jacob Fry (https://ashford.instructure.com/courses/109439/users/196867) 
Yesterday
Discuss the evolution of the securities markets, including the impact of the
NASDAQ, CME, ECNs, and foreign exchanges.
In the U.S., stock exchanges have been around since the late 1700s. The first American Stock
exchange, the Philadelphia Stock Exchange, was founded in 1790. The New York Stock
exchange was created in 1792. (Wall street, n.d.) Interestingly enough, the NYSE began with
only 5 stocks being traded. The NASDAQ has developed strongly through the 2000s. In 2007
the NASDAQ acquired the Philadelphia Exchange and created a global exchange with
Swedish exchange OMX. (Wall Street, n.d.) As American capitalism has flourished – it
naturally brought with it a strong desire for other countries to develop foreign/global markets.
This has led to globalization and capitalization in some form across the world. The NYSE is
the largest exchange in the world by capitalization in dollars followed by the NASDAQ and
then the Shanghai exchange. (Block et all, 2022)
Explain the role of securities markets in the efficient allocation of capital among
issuers and investors based on the efficient market hypothesis.
Our textbook defines markets and marketable securities under money markets (short term
markets) and capital markets (long-term markets) and of course foreign markets. Further, our
textbook defines efficient markets as:
“Markets in general are efficient when (1) prices adjust rapidly to new information; (2) there is
a continuous market, in which each successive trade is made at a price close to the previous
price (the faster the price responds to new information and the smaller the differences in price
changes, the more efficient the market); and (3) the market can absorb large dollar amounts of
securities without destabilizing the prices.” (Block et all, 2022)
Essentially the securities should provide an avenue for raising capital for an issuing firm while
providing those investing capital with an opportunity to receive a return on investment equal to
or greater than the risk of the investment deems reasonable.
Evaluate if the presence of dark pools enhances or reduces capital market

efficiency.
While I am not an expert in dark pools – I do feel confident in saying that anything that is not
fully transparent as it relates to pricing and purchasing on a public exchange is never a
positive. I would simply argue that if a dark pool was a positive force for market efficiency, it
would reflect itself as one. Our text mentions that one of the primary defenses of large hedge
funds, brokers, insurance companies and so forth is that the dark pools allow them to trade
large amounts of securities, with low fees, in large amounts that are undisclosed to
competition. (Block et all, 2022, PG 464) Sounds a lot like high-level cheating to me.
method used. If possible, try to select a company that a fellow student has not
already selected.
I have used super league gaming (SLGG) as a discussion company recently and it still fits
here. In August of 2020 the company issued $8.4 Million dollars in an underwritten public
offering of common stock. Essentially the company issued a large portion of company stock at
a bulk discount to raise a sizable amount of funding in a short period. From the time of
extending the offer until closing of the shares was less than a couple weeks. (From a public
perspective)
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial management (18th

ed.). McGraw-Hill Higher Education.
Wall street and the stock exchanges: Historical resources: Stock exchanges. Research
Guides. (n.d.). Retrieved November 15, 2022, from https://guides.loc.gov/wall-street-
history/exchanges
Super League Gaming. (2020, August 27). Super League Gaming announces pricing of $8.4
million underwritten public offering of common stock. release/2020/08/27/2084801/0/en/Super-
League-Gaming-Announces-Pricing-of-8-4-Million-Underwritten-Public-Offering-of-Common-
Stock.html
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11/16/22, 5:52 AM Topic: Week 4 - Discussion Forum 1

This is a graded discussion: 1.5 points possible

Week 4 - Discussion Forum 1 5 5

Capital Markets [WLO: 1] [CLOs: 1, 2, 4] Twitter

Your initial response should be a minimum of @DaveRamsey

Search entries or author

CLICK TO EXPAND / COLLAPSE

(https:// Valerie Vann (https://ashford.instructure.com/courses/109439/users/6028) 

Prior to beginning work on this discussion forum, read Chapter 14 in the Foundations of

For this discussion forum,

CLICK TO EXPAND / COLLAPSE

(https:// Kristin Ashby 

is also subject to insider trading conflicts. As technology increases, more information is

Block, Stanley. Foundations of Financial Management. Available from: University of Arizona

Macrotrends. (n.d.). Tesla Shares Outstanding 2010-2022.

CLICK TO EXPAND / COLLAPSE

(https:// Wendy Moore 

Britannica (n.d.) The development of securities trading. Retrieved from:

CLICK TO EXPAND / COLLAPSE

(https:// Michelle Brown Berry 

Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial

CLICK TO EXPAND / COLLAPSE

(https:// Jacob Fry (https://ashford.instructure.com/courses/109439/users/196867) 

or greater than the risk of the investment deems reasonable.

Evaluate if the presence of dark pools enhances or reduces capital market

Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial management (18th

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