1. What are the fundamental differences between the Nasdaq and the NYSE? Do firms and investors need these markets at all?

2. The WorldCom and Enron accounting scandal involved the firm classifying operating expenses as capital investments. Discuss the impact on Enron and WorldCom’s operating cash flow and their overall cash position. Did the financial statements contain any clues that could have warned investors of the fraud? Could the Enron debacle have Been Prevented? What actions could have been taken by auditors, regulators, and lawmakers?