Story: Corporate Scandals Lead to Changes in Financial Industries, 05/10/04
http://www.pbs.org/newshour/extra/features/jan-june04/corporate_5-10.html

Reading Comprehension Questions:

1. What are the similarities between the Martha Stewart and Frank Quattrone convictions?

2. What are stock markets? How do they work?

3. What are stock options?

4. Why are stock options significant to the heads of businesses?

5. What is the Glass-Steagall Act and why is it important?

6. What did the government do to attempt to solve some of these financial problems? Explain some of the details of the new rule.

Discussion Activity (more research might be needed):

1. Research the Sarbanes-Oxley Act. Do you think that the rules will successfully prevent corporate scandals like the ones mentioned in the article? Why or why not?

2. Should people who commit corporate crimes be given stricter sentences than those who commit violent crimes? Why or why not?

3. How do these corporate crimes impact the average American? Explain your answer.

Write a 300-500 word essay on any of these topics providing clear examples. Send your completed editorial to NewsHour Extra [extra@newshour.org]. Exceptional essays might be published on our Web site.