July 13th, 2022 
PART A . Read Chapter 2 of Seth Klarman s classic book: Margin of Safety, also watch the video about the scene of the movie the Wolf of Wall Street and answer the following questions:
1) Does Seth Klarman think that IPOs are a good investment? And why?
2) What is a Closed-End fund and why those types of funds exist according to the author?
3) What is a NYSE circuit breaker and why do they apply? On March 2020, we had the last circuit breaker applied to the NYSE, do some research and briefly explain what happened that day.
4) After reading the chapter, your aunt asks you for some advice about investing in Wall Street, write at least a paragraph advising her about you have learned reading the Chapter.
PART B. Read the article: The repurchase revolution and answer the following questions, make sure to review your class notes, slides, textbook to incorporate concepts that we learned in class in your replies.
1) In class, we have seen that stock repurchases are a good signaling that companies provide to the market, but the article thinks that in this case is otherwise, explain why.
2) The article mentions that some companies are being rewarded with higher stock prices without a need to pay a dividend or repurchase stock, just by reinvesting their profit back in their business, how can you explain this? (Hint: think about the type of companies (Amazon), cost of capital vs returns of a project, etc.)
3) In the article is mentioned that a corrupt manager can take advantage of a share-buyback, how this work? Create a simple example showing how this scheme can work.
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