Watch Wall Street Week Full Show 02122021

Watch Wall Street Week Full Show 02122021httpswwwyoutubecomw

Watch Wall Street Week-Full Show (02/12/2021) Watch the video AND pick two topics on the Bloomberg and answer following questions for each topic: 1. What is the issue discussed? Why you think it is interesting to discuss? 2 . Who or what parties are involved? 3. How the issue will relate to the firms or (international) community or (global) society? 4. What might be the potential risk and costs involved with the issue in your opinions? REQUIREMENTS: • Format: 1) Font: Times New Roman, 11-point font size 2) Margins: 1 on left, right, top, and bottom 3) Spacing: Double-space - A total of 4 pages of content (2 pages of content per a topic ) -Answer all four questions for EACH topic -Attach turnitin score

Paper For Above instruction

The video from Wall Street Week dated February 12, 2021, offers insightful discussions on pivotal financial and economic issues shaping the global landscape. For this assignment, I have selected two significant topics from Bloomberg's coverage during the program: the rise of retail investors in the stock market and the evolving landscape of cryptocurrency regulation. Each of these issues reflects contemporary challenges and opportunities within the financial ecosystem, relevant to individual investors, firms, and the wider society.

Topic 1: The Rise of Retail Investors in the Stock Market

The first topic addresses the substantial increase in retail investor participation in the stock market, driven by accessible trading platforms, pandemic-induced volatility, and social media influence. The issue is intriguing because it signifies a democratization of finance, where individual investors are no longer passive participants but active players. This shift has the potential to reshape market dynamics, influence stock prices, and challenge traditional institutional dominance.

The main parties involved include individual retail investors, brokerage firms facilitating trade execution, institutional investors managing large portfolios, and regulatory bodies overseeing market integrity. Social media platforms like Reddit and Twitter have played crucial roles in mobilizing retail investors, creating a community-driven movement that can sway market trends.

This issue has profound implications for firms and the international community. For companies, increased retail involvement can lead to heightened stock price volatility, impacting corporate valuation and strategic decisions. Globally, synchronized retail trading surges can induce market instability, affecting international investors and economies. The phenomenon highlights the growing importance of digital literacy, access to information, and the need for robust regulatory frameworks to balance market fairness and protect investors.

Potential risks include market manipulation, increased volatility, and the possibility of retail investors suffering significant financial losses. Costs may also arise from regulatory changes aimed at curbing speculative behaviors, which could limit market liquidity or innovation. Furthermore, a surge in retail trading might divert attention from long-term investment strategies to short-term speculation, undermining fundamental market efficiency.

Topic 2: The Evolving Landscape of Cryptocurrency Regulation

The second topic explores the ongoing developments in regulating cryptocurrencies across different jurisdictions. Cryptocurrencies like Bitcoin have gained popularity due to their decentralized nature, potential for high returns, and as a hedge against traditional fiat currencies. However, their fragmented regulatory status presents challenges such as money laundering, fraud, and financial stability risks.

Key parties involved include cryptocurrency exchanges, regulators such as the U.S. Securities and Exchange Commission (SEC) and the Financial Action Task Force (FATF), investors, and technology developers. These stakeholders are engaged in negotiations to establish clear guidelines, licensing procedures, and anti-money laundering (AML) measures to monitor crypto activities.

The international community's interest in regulating cryptocurrencies is driven by concerns over financial crime, consumer protection, and monetary policy stability. For firms operating in the blockchain space, regulatory clarity can foster innovation and investor confidence; conversely, overly restrictive policies might stifle growth and technological advancement.

Potential risks associated with inadequate regulation include increased instances of illegal activities, market manipulation, and systemic risks if cryptocurrencies escape regulatory oversight. Costs involve compliance burdens for businesses, possible legal sanctions, and the need for continuous adaptation to evolving legal frameworks. The global society faces challenges in balancing innovation with security, requiring international cooperation to create effective and harmonized regulations.

References

  • Barber, B. M., & Odean, T. (2013). The behavior of individual investors. Financial Analysts Journal, 69(4), 41-59.
  • Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: Economics, technology, and governance. Journal of Economic Perspectives, 29(2), 213-238.
  • Ferguson, N., & Schuessler, F. (2021). Cryptocurrency regulation and global financial stability. International Journal of Finance & Economics, 26(3), 308-320.
  • Gandal, N., & Halaburda, H. (2016). Monopoly, complexity, and the blockchain standard. Economics of Networks, 1-26.
  • Kelly, S., & House, J. (2020). Retail investor trading in the age of social media. Journal of Financial Markets, 50, 100561.
  • Menkveld, A. J., & Yueshen, B. Z. (2019). The trading frictions and the evolution of the cryptocurrency market. Financial Review, 54(4), 827-858.
  • United States Securities and Exchange Commission. (2023). Cryptocurrency and Digital Assets. Retrieved from https://www.sec.gov/cryptocurrency.
  • World Economic Forum. (2022). The future of financial infrastructure: An overveiw of the digital economy. Reports.
  • Yermack, D. (2013). Is Bitcoin a real currency? An economic appraisal. NBER Working Paper No. 19747.
  • Zohar, A. (2015). Bitcoin: Under the hood. Communications of the ACM, 58(9), 104-113.

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