I. Analyze Roles and Responsibilities for Compliance

The financial manager is an individual who is responsible for the financial health of an organization. The key function of a financial manager includes producing a financial report, direct investments activities and in developing strategies and plans for the long term financial goals of their organization (Brown, 1994). The types of decision that finance manager usually undertake include investments decision. The finance manager is responsible for defining the optimal size of an organization and analyzes organization strategic goals if is in line with company objectives. To make investments decision the financial manager has to analyze whether the resources adapt to the optimal size desired for the company.

It is also necessary to identify the asset that the company must acquire or get rid of in order to achieve efficiency in assets management. The finance manager defines a financing strategy over a long-term period. The aspect of financing involves maintaining a constant inflow of capital since the saving margin will not allow an operation to continue for much longer without the financial strategy (Brown, 1994). The financial manager ensures he or she defines that sources of financing that would offer the best credit to the organization. The financial manager would as well make a decision of financial mix when necessary to meet the financial strategy of the organization. For example, in order to improve working capital, the financial manager may make a decision of seeking short term loan.

Long term investments that would yield cash flow in future would require equity financing or long-term debts. The financial managers make a decision relating to assets management. The financial manager stipulates and assures that the existing assets are managed in the most efficient way possible. The financial manager ensures he manages both long term assets and current asset in order to improve revenue collection. For example, the fixed assets may include things like building, machines that are efficiently managed to ensure the firm improves its production which is reflected through revenue generation while short term assets or current assets may include inventory, cash, receivables, and other current assets.

This asset if effectively managed it may improve the overall success of an organization. The dividend policy decision is another role of the financial manager. The financial manager must make a decision on how much of the company earning will be paid to the shareholder. Therefore, the manager will make it necessary to determine if the generated earning will be paid to shareholder and at what percent must that dividend be paid. The dividend payments policy must be in line with long term strategic objective of an organization that relates to expansion. Mixed dividend policy is preferred because the firm will pay certain portion of net income and the remaining portion is conserved as retained earnings.

Ethical Issues facing financial managers

The ethical issues that financial management is exposed to include accuracy issues, transparent issues, and integrity issues. The financial manager has a responsibility of ensuring that financial publications are accurate and would fairly reflect the financial condition of the company. The accounting Errors and financial fraud are issues that financial manager should avoid because if these issues are observed it would actually damage the interest of shareholder, employees and affects the confidence in the financial system (Brown, 1994). To avoid or address this ethical issue organization documents ethical guidelines for a financial manager that require a financial manager to maintain accurate record and books and prepare financial documents in accordance with GAAP.

The issue relating to transparency also faces many financial managers. Transparency means explaining financial information clearly especially for those who aren’t familiar with the company operation. Some financial manager may hide or overstate the financial statements so that the firm might look like it is performing well in the eyes of shareholders. The financial manager should adhere to a regulatory requirement by presenting financial statements that reflect company performance. The Sarbanes-Oxley act of 2002 is set to protect shareholder, employees, and public from accounting errors and fraudulent financial practice (Coustan, Leinicke, Rexroad, & Ostrosky, 2004). The integrity issues such as manipulating stock, insider trading is some of the issues that face financial manager. The internal policies should help handle some of this ethical issue.

Federal safeguard against financial reporting abuse

The federal safeguard against financial reporting abuse includes Sarbanes-Oxley act of 2002 that establishes sweeping auditing and financial regulation for public companies (Harris, 2009). The other regulation includes securities exchange act of 1994. This regulation was created by governing securities transaction on the secondary market and its key responsibility is to ensure greater financial transparency and accuracy and less fraud manipulation. The two-regulation role is to ensure the financial statements are accurate and stakeholders are not affected by financial misstatement. The Sarbanes Oxley act protects all stakeholders while security exchange of 1934 protects shareholders. These regulations are appropriate in reducing financial fraud and inaccuracy.

II. Investment Options

The company which is going public it means that the firm has issued an initial public offering (IPO) hence it is a public traded and owned entity. The companies usually go public in order to raise capital essential for expansion. The advantage associated with going public include the ability of the firm to strengthen capital base makes acquisition easier and diversified ownership as well as an increase in prestige. The disadvantage of going public is that it put pressure on short-term growth, increase costs, imposes more restriction on management and on trading, forces disclosure to the public and also it makes business owns lose control of decision making.

Differences between NYSE and NASDAQ

The NYSE is an auction market where individuals are buying and selling between one another and there is an action occurring. The highest bidding price is matched with the lowest asking prices. At NASDAQ is a dealer market. The markets participants are not buying from or selling to another directly instead the dealer is the one doing the transaction. The matching of buyer and seller occur in a split of seconds electronically. The entry fee is $500,000 and the listing fee is based on number of share of the listed security which is capped at $500,000 while at NASDAQ, the entry fee is $50,000 to $75,000 and yearly listing fee came in around $27500 among many other differences (Jeff Desjardins, Visual Capitalist, 2017). The smartest private investment option is where my income will yield a higher value and that depends on my industry interest.

Investments products

The investments products that are available include stock and stock funds, bonds and bonds funds and derivative. The stock and stock funds are a stock investment that represents equity ownership in the publicly traded company (Jones, 2007). The investors may earn dividend at returns or selling it if there is significant growth in stock price. The bonds and bond funds are fixed earning income. The investors would earn constant interest. The derivatives are products that are offered based on the movement of specified underlying assets. The investments product yield return to investors and other claims. The institutions that sell them include mutual security investments firms, banks, and other firms.