Question by xpenguin: Essentials of Investments by Bodie/Kane/Marcus . I got a h.w :(?
Hello there .. guys I have a home work on these two questions .. please If anyone knows anything about it write it down here…

1. Why would you expect securitization to take place only in highly developed capital markets?

2) Discuss the advantasges and disadvantasges of following forms of managerial compensation in terms of mitigating agency problems, that is, potentioal conflicts of interest between managers and shareholders.
a. A fixed salary
b. Stock in the firm
c. Call options on shares of the firm.

Best answer:

Answer by CHARLES R
the answers should be in chapter 4.

for question #2 you’re basically ensuring there’s significant checks and balances between owners and management.

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