How economy plays a vital role in controlling stock prices.

Q: What is the relationship between risk and return in finance? Why does this relationship hold in the…

A: A return refers to the additional net revenue received from the investment. Risk refers to the…

Q: How are financial firms able to make profits?  Under what circumstances are their profits limited?

A: Financial companies profit from investing their funds in firms that have the potential to grow and…

Q: What are Fixed assets? What do they include?

A: If a firm use a tangible piece of his own property to generate his income is known as fixed asset.…

Q: How Forecasting plays an important role in stock market?

A: Forecasting plays an important role in stock market. Forecasting the future changes in stock market…

Q: Is common stocks or bonds best for a high risk firm? Why?

A: Stock: When corporates trades in equity securities, Stock market is the place where the investors…

Q: 02.04 What is Stock Anyway? Investing basics chart

A: Stock refers to the share of an individual in the total investment in a company. It is also known as…

Q: Investors must go for investments that are liquid to ensure availability of funds when needed.  Is…

A: Liquidity is defined as the ability to exchange assets for cash. The more easier it is to convert an…

Q: What is shares of stocks?

A: A capital market is a marketplace where investors and sellers exchange financial instruments such as…

Q: Give your opinion on the current situation of stock market right now. Would it be profitable to…

A: The securities market could be a share market, but besides shares of corporations, different…

Q: Is the stock market "out of control?" How can the poor benefit from this financial institution?

A: A company or institution which is involved in the financial activities of the economy like,…

Q: Explain why emerging market economies is important in financial markets?

A: Financial markets represent the marketplace in which the buyers and sellers trade various financial…

Q: Based on this video:     https://youtu.be/Q-zp5Mb7FV0 Is this video related to the concept of…

A: From the video, we can say that the topic is related to the concept of capital markets which will be…

Q: What is the role of the board of directors in corporate governance? What responsibilities does the…

A: Governance refers to the system under which rules and regulations have been followed by an…

Q: Why is it important for people who own stocks and bonds to diversify their holdings? What type of…

A: System that permits exchange of funds between the borrowers, investors and lenders via the medium of…

Q: Why does the "wherewithal" and "efficiency" of the financial system matter (so much)?

A: Financial markets are the market system deals with borrowers, lenders, and investors negotiating for…

Q: what are the roles of financial managers?

A: Financial Manager plays the critical role when it comes to the financial management of firm.

Q: what vital role do demand and supply play in the stock exchange?

A: The Law of demand states the inverse relationship between the quantity demanded of a good and the…

Q: Is selling bonds on the capital market indirect or direct financing? Is taking out a loan a…

A: Answer - Thank you for submitting the questions.But, we are authorized to solve only 3 sub parts…

Q: Young people with little wealth should not invest money in risky assets such as the stock market,…

A: The capital market applies to financial markets that operate for the issuance, acquisition and sale…

Q: Which of the following is a benefit of using financial investment to raise financial capital? there…

A: In a market, when a firm wants to raise funds or capital to make investment in the business, it has…

Q: What are the most liquid assets?

A: A liquid asset is that type of asset which can be easily converted into cash in a very short period…

Q: What would be the effect of increased demand for the company's stock?

A: The very known law of Demand is quite applicable to the financial markets and an increase in the…

Q: purpose and contents of "Financial Markets" is : Group of answer choices   about what a basic…

A: A financial market refers to the form of market in which people trade financial assets and…

Q: The demanders of funds participate in the financial market to earn profit. * True or False??

A: Individuals and businesses who save money and make financial investments are the suppliers of funds…

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

A: Stock prices are a price at which the stock is being exchanged in the stock market. Stock market is…

Q: Why are the financial statements important in business?

A: Financial statements are the written records which conveys the activities of business and financial…

Q: What are the functions of stock exchanges in the economy? Please explain?

A: Stock exchange: It means a common marketplace for the trading of stocks between buyer and seller.

Q: How would a financial manager's role in a corporation increase/decrease if the rate of inflation in…

A: Inflation has its own pros and cons. Consumers are worse-off with inflation but investors can enjoy…

Q: How do economists define equilibrium in financial markets?

A: The price is the difference between what providers receive and what demanders pay in any market.…

Q: What is an economically meaningful corporate event from a shareholders’ ownership perspective? a.…

A: Common Business Practices Stock splits, dividends, mergers and acquisitions, rights issues, and…

Q: Should you buy or sell stocks?

A: Business can be of many types. For example in oil business, there is oil production and then selling…

Q: What are the requirements that a company must have, in order to insert in Borsa Italiana stock…

A: Companies of all sizes can use the Borsa Italiana stock exchange to generate considerable funds to…

Q: What is stock exchange

A: Capital is a very important factor while setting up any business. Capital refers to the amount of…

Q: If a corporation decides to issue their shares of stocks to the public for the first time, which of…

A: Shares refer to the ownership of the company. If a company buys shares of a particular company then…

Q: Why is ownership of a corporation the easiest to transfer?

A: A corporation  varies from a sole proprietorship and a partnership in that it is a separate legal…

Q: What is importance of financial markets for the productive capacity of the economy?

A: The economies work with the motive of increasing, or enhancing their overall economic growth, and…

Q: Would the interest rate increase be more likely to hurt or help the financial institution’s…

A: Interest rates affect the profitability of financial institutions. The financial institutions…

Q: What is the role of a shareholder in a corporation?

A: Shareholders are the owners of a company. They have ownership rights in the shares of corporation.…

Q: Answer the attached question

A: With rise in stock prices, it is only profitable till shares are sold.

Q: How much liability does stockholder assume?

A: Shareholder: Any person, company, or organization holding stock in a specific company.

Q: When financial analysts talk about “firm value” or “market value”, what views do they take? What are…

A: The value, or market capitalization, of an organization, is one piece of the organization's…

Q: In how many categories, financial system is classified?

A: Financial system is classified into 4 categories.