Question : 1. Your broker calls to offer you the investment opportunity : 10402

1. Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in mortgage-backed securities. The broker explains that these securities are entitled to the principal and interest payments received from a pool of residential mortgages. List some of the questions you would ask your broker so as to assess the risk of this investment opportunity.

2. Do some reading on the Internet (i.e. Google) to find out more about the Sarbanes-Oxley Act’s provisions for companies. Select one of those provisions, and indicate why you think financial statements will be more trustworthy if company financial executives implement this provision of SOX.