Solved: Role of Capital Market Intermediaries in the Dot-Com Crash of 2000
- List all the major players that play an intermediation role between individual investors and entrepreneurs/managers. What is the intended function of each intermediary?
- How is each intermediary identified compensated for performing its respective function? Is the compensation arrangement likely to lead to any dysfunctional incentives?
- Identify the role each intermediary might have played in the creation of the Dot-Com bubble. Was this behavior related to the potential dysfunctional behavior you identified in question 2?
- What do you propose to fix these problems?