Corporate Scandal Assignment Example | Topics and Well Written Essays - 2750 words

corporal Scandal - Assignment ExampleThe firm initially started its operations by trading penny parentages, i.e. production lines of dainty companies which have less market capitalization and trade below $5 in the USA market. centime stocks are very volatile and thus very risky for the investors who investors who invest in order to take out windfall gains. Madoffs firm did not trade on the appal of the NYSE and rather traded in the unlisted market. That is Madoffs firms helped retail brokers trade directly with each other without intervention of an exchange. Thus it helped the stock traders maintain anonymity. Initially Madoff used the quotes available through National quotation Bureaus stock quotes. But in order to compete in a better way with the firms that traded on the floor of New York Stock Exchange the firm developed a computer application that they used to circularize information of its quotes. This technology was later used to form NASDAQ. The firm commanded a good p osition in the market and at one time it was the largest market maker of NASDAQ and was the 6th largest in Wall way among the market makers. The firm also had an coronation counselling division that was not well published. The investment management arm also did advisory functions. His firm had several of his family members on board including his brother, brothers girl and his two sons. Mardoff and his firm was regarded as one of the masters in the third market with their average plenty of trades equaling about 9% of the volumes traded by NYSE.Besides running his legitimate business Madoff investment securities LLC in 1960 which dealt with OTC trading of securities without the involvement of stock exchanges, Madoff also run an investment management firm named Ascot Partners. Through its investment management firm Madoff sought investments from various class of investors including celebrities, common man, banks, and other fund houses and promised them of steady returns. Madoff sta te that he was able to generate steady