The Dot-Com Crash CaseWhat is the intended role of each of the institutions and intermediaries discussed in the case for the effective functioning of capital markets?Venture capitalistsTo provide capital for companies in their early stages of development.To screen good business from bad ones.Employ experienced and savvy people who worked closely with their portfolio companies. So that they can monitor and guide them to turn a business idea into a well managed, fully functional company that could stand on its own until they can face the scrutiny of the public capital markets after an IPO.
Investment bank underwritersHelp entrepreneurs in the actual process of doing an initial public offering.Provide advisory financial services.Helped companies price their offerings.Underwrite the shares and introduce them to investors.Sell-side analystsPublish research on public companies.Forming relationship with and talking to the managements of the companies.Follow trends in the industry.Making buy or sell recommendations on the stocks.Buy-side analysts and Portfolio managersThe same duties as sell-side counterpartsDoing industry researchTalking to companies and management teamsComing up with earning estimatesDoing valuation analysisRating the stock prices of the companies as either buys or sellsConvince the portfolio managers.Accountants and auditorsIndependent accountants audit the financial statements of public companies to verify their accuracy and freedom from fraud.Auditors are responsible
Sell-style and short sell- or sell-side
Investment bank underwritersHelp entrepreneurs in the actual process of doing an initial public offering.Provide advisory financial services.Helped companies price their offerings.Underwrite the shares and introduce them to investors.Convince the shares and introduce them to investors.
Investment bank underwritersHelp entrepreneurs in the actual process of doing an initial public offering.Provide advisory financial services.Helped companies price their offerings.Underwrite the shares and introduce them to investors.Convince the shares and introduce them to investors.
Investment bank underwritersHelp entrepreneurs in the actual process of doing an initial public offering.Provide advisory financial services.
Investment bank underwritersHelp entrepreneurs in the actual process of doing an initial public offering.Provide advisory financial services.Collaborate with other government, business, government and private entities within a firm.Investment bank underwritersHelp the general public.Help entrepreneurs in the actual process of being an investor.Provide advisory financial services.
Investment bank underwritersHelp the public help entrepreneurs.
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