Reading market as institutions page 69 answers this exercise.

5. To some economists, the medieval "just price" doctrine seems quaint, if not igno-rant. "Prices should be whatever market forces dictate!" they say. On the other hand, experiments with the "Ultimatum Game" (discussed in Chapter 2) seem to indicate that people can have very strong beliefs about what is fair and may act on these beliefs. Do you think the two views of prices can be reconciled? What might be some of the issues involved?

Society ignored or even criticized the contributions of marketing until the beginning of the 20th century. At that time, economies once marked by a scarcity of goods began to enjoy an abundance of goods. Marketing skills were needed to solve the distribution problems that resulted. Thus, it was not until the early 1900s that the importance of marketing was realized - and that marketing was accepted as a separate academic subject in schools and colleges. Today, countries that operate with market‑directed economies have achieved genuine improvements in standards of living - while most command economies have collapsed or are "on the ropes." Even today, however, many people do not have a very clear understanding of marketing. No one single definition of marketing will satisfy everyone. Many people - including some students and business managers - tend to think of marketing as just "selling" or "advertising." Others see marketing as an all‑inclusive social process that can solve all the world's problems. Some critics, meanwhile, seem to blame marketing for most of society's ills!

This exercise is intended to help you see more clearly what marketing is all about. One way to learn about marketing is to study the definitions in the text. Another way is to use these definitions. This is the approach you will follow in this exercise.

Assignment

Listed below is a common criticism about marketing. Discuss your viewpoint in a way that shows your understanding of marketing.

Each student should post his/her answer and post comments to other student's posting (beyond simple agreement or disagreement; but with respect to personal opinion). Also, each student must respond to at least one comment of their initial post. Participation is required.

Listed below are some commonly asked questions about marketing. Answer each of these questions in a way that shows your understanding of marketing.

How would you respond to the criticism "Marketing just adds unnecessary costs to the price of everything we buy?"

Should marketing be viewed as a set of activities performed by business and nonprofit organizations, or alternately as a social process?

Why is it important to make this distinction?

A business can be valued by capitalizing its earnings stream (see example 6.15 in your textbook).

How might you use the same idea to value securities, especially the stock of large publicly held companies?

Is there a way to calculate a value that could be compared to the stock’s market price that would tell an investor whether it’s a good buy? (If the market price is lower than the calculated value, the stock is a bargain.)

What financial figures associated with shares of stock might be used in the calculation. Consider the per share figures and ratios discussed in chapter 3 including EPS, dividends, book value per share etc.

Does one measure make more sense than the others?

What factors would make a stock worth more or less than your calculated value?

In at least two page, answer the case study’s proposed prompt or questions.(Please dont copy other answers)

See chapter 6, example 6.15 page number 254

Text Book : Copy the link in URL

http://197.14.51.10:81/pmb/GESTION2/FINANCE/0324422636.pdf

1 a) Compare ETFs (Electronic / Exchange Traded Funds) with Mutual Funds studied in the class. Specifically look at the (i) common features, such as ownership and the financial assets involved; and differences between the funds.

b) How or in what way is the ETF connected to the Financial System. Specifically, think about the assets, involvement in financial institution or financial market with the justification (that is reasons) in mind.

2 . In the recent past, small business lenders (for example 'biz2credit', 'kabbage', 'CANCapital', and 'LendingClub') have become popular. Their major function is to provide loans to small businesses to carry on the day-to-day business operations. You may not need to do research in order to answer the following questions. But most definitely you would have to use your analytical mind and make connections to the material learned in the class.

a) Why are these lenders important to the financial system? Include the competition from the financial institutions (such as commercial banks, shadow banks) discussed in the class.

b) What do you think about the long run sustainability of these lenders? Think about what does it take to survive as lenders and what may be major hurdles for their survival.