What effect might a fall in stock prices have on businessinvestment?

In 2008 there was an increase in uncertainty about the quality of structured financial products that were backed by mortgages (MBS - mortgaged backed securities). So that the market for these securities dried up (became less liquid). What policies the government could do to jump start (improve liquidity of) the market

In 350 words or less Explain how Random Walk Theory makes it difficult for investors to make short run decisions. Create an example to illustrate this difficulty.

A type of financial innovation designed to get around regulations is called