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Essay / Research Paper Abstract
This 9 page paper looks at considerations when comparing Nike and Adidas as investment targets. The first part of the paper looks at the role of the regulators, who they are and why their role is so important for the company and the wider stock market. The paper then looks at the latest securities issue and compares the performance of each company in general terms. The bibliography cites 5 sources.
Page Count:
9 pages (~225 words per page)
File: TS14_TEnike2.rtf
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Unformatted sample text from the term paper:
The companies prepare accounts in similar ways, but in different countries they are under the direct supervision of different accounting bodies. Nike reports in the US so reports in US
dollars, Adidas is reporting in Germany so reports in Euros as these are the national currency. In both cases they are overseen by an established regulatory
framework. Accounts are used by many different stakeholders for different purposes. There is the need for some type of regulation to ensure there is some uniformity and can allow
some level of certainty to be placed into the accounts by the investors. In both cases there is the need for this certainty as without it there will be chaos
in the stock markets and the investors will not be able to compare the performance of different companies or even place any reliance in the result. The
student may note that in countries where there is a weaker regulatory framework there is a greater level of volatility in the share price. It has also been argued that
where the regulatory framework is weaker and there is less enforcement there is also a greater propensity to fraudulent or misleading accounts, as seen in Asia and China.
However, in more recent years these countries have also increased the level of regulation in order to reduce the lack of trust that international markets have placed in
their stocks and shares. This has been rewarded as the stock markets has seen more investment taking place. The markets rely on the investors putting money
into the companies and then buying and selling shares on the secondary market. If there are fears that companies are misleading their investors, misreporting or subject to undetected fraud
...