1. What was the motivation behind legislation separating commercial banking and investment banking?
2. Does the fact that a security has passed an SEC review mean that investors can buy the security without having to worry about taking a loss on the investment?
3. David decides to short sell 20,000 shares of Stone Inc. stock, currently trading at $7.00 per share. Determine David’s profits if Stone stock trades at $5.00 per share at the moment in which David has to buy the shares back.