• Contrast the activities of securities firms from other financial institutions. How do these financial institutions differ from hedge funds?

Q: How do transaction costs and asymmetric information hinder the growth of financial markets?

A: Transaction cost : transaction cost are expense incurred when buying or selling goods or services.…

Q: Securities exchanges create efficient markets that do all of the following EXCEPT

A: Because there are primary markets and Secondary Markets which investors have to take the opportunity…

Q: what is meant by “The money market is necessary but not sufficient for the liquidity of securities…

A: Solution- The money market is an organized exchange market where participants can lend and borrow…

Q: 4. When an organization underwrites and distributes new investment securities to helps businesses…

A: An investment bank is a type of financial institution that provides a range of services to clients,…

Q: Active secondary markets

A: Secondary Market: Secondary market is the market where the securities are bought or sold without the…

Q: how

A: Market risk is the potential for losses arising from adverse movements in market prices, such as…

Q: Discuss the main components of the audit expectation gap in the capital markets.

A:

Q: The way in which the price of securities determined in Financial Markets is:

A: The correct answer is b. Through frequent interaction between investors.

Q: How does a bank try to achieve the best possible risk adjusted return on its overall loan portfolio?

A: The possibility of a loss arising from a borrower's inability to repay a loan or meet legally…

Q: Which of the following investment types cannot be sold during normal market hours? a) mutual fund…

A: Investment is a process of investing money with the motive of making more money.  The person who…

Q: Why do you think that some mutual funds would describe themselves as passive

A: There are many types of funds available in the market and each fund has own strategy of investment…

Q: What is a bank syndicate? How is syndication supposed to work/function? What is the difference…

A: A bank syndicate is a group of banks or financial institutions that collaboratively provide funding…

Q: How do financial institutions help individuals diversify their portfolio risk? In your opinion which…

A: We have to explain how financial institutions help individuals diversify their portfolio risk.…

Q: What are the advantages and disadvantages of exchange-traded funds versus mutual funds?

A: Mutual funds refers to a pool of investment. Mutual funds can be of two types:  closed ended and…

Q: Which of the following is not a main core function of the financial system? a. Provide a payments…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: do you believe there is a need for them as hedging vehicles in corporate finance? If so, how would…

A: Derivatives are financial instruments whose value is derived from the value of an underlying asset,…

Q: securities different from corporate b

A: Treasury securities and corporate bonds are both debt securities and promise to pay fixed return on…

Q: pros and cons of diversification in banking.

A: Introduction : The diversification of banking refers to the strategic diversification of banking…

Q: In general,who has better monitoring ability?a bondholder or a bank lender?Please explain why.

A: When an company issues bonds to general public and whoever holds the same is known as bondholder.…

Q: Why securitisation may be very beneficial for both institutions and investors ?

A: explanation Securitization is beneficial because it provides possibilities for investors while also…

Q: Why are U.S. government securities viewed differently from state and local government securities in…

A: The question is based on the concept of risk of default in bond investment. The default risk is…

Q: Give the difference between hedge funds and money market funds.

A: Hedge funds are option investments that use combined funds to generate effective gains for their…

Q: Explain all you know about “efficiency of financial markets”. What are the evidences for and against…

A: Efficiency of financial markets depends on the fact that whether all the facts and figures regarding…

Q: Explain each of the investment instruments stated below that offered by financial institutions.…

A: Investment instruments Investment instruments also known as financial instruments is a document that…

Q: Describe some of the motives and mistakes made by the investors?

A: Investors are driven by different motives when taking decision to make investment in specific…

Q: Question 2) Issuing marketable securities is the primary way businesses finance their orperations.…

A: Marketable securities can be defined as those short term highly liquid securities which can be…

Q: How do mutual funds differ from UITFs?

A: Mutual Funds are constructed with the help of a pool of money that is collected from many investors…

Q: How do disclosure requirements help limit excessive risk taking by banks

A: Basel norms: Basel norms are the norms which prescribes minimum capital which banks are required to…

Q: What are the differences between Mutual Funds and Hedge Funds?  Specify the differences with respect…

A:

Q: xplain how individual securities affect investment portfolio risk. In your answer, when discussing…

A: Portfolio risk - Portfolio risk refers to the possibility that the assets or units in your…

Q: What does the word hedging mean? Why do companies hedge foreign exchange risk?

A: What does the word hedging mean? Why do companies hedge foreign exchange risk? Answer : The term…

Q: What steps will a bank take to put in place an aggressive /defensive strategy in the face of rising…

A: If there is a difference between the interest sensitive assets and interest sensitive liabilities of…

Q: Describe the role of mutual funds as financial intermediaries.

A: The primary role of mutual funds as financial intermediaries is to pool the resources of many small…

Q: How is the securities markets affect our daily lives.

A: Security market is referred as the component of the wide financial market, where the securities can…

Q: What is the capital market? What are the primary securities traded in it?

A: A stock market is a financial place where multiple buyers and multiple sellers come together to…

Q: Discuss the potential market failure in the diamond model of banking regulations

A: The diamond model in banking is also known as the dual principle-agent relationship model because it…

Q: Which of the following is rated by most securities rating services? Market risk Quality Quantity…

A: Market risk is the risk of change in prices because of market factor and volatility, and this…

Q: Discuss relevance of securities to Fund Managers and Treasurers when they trade in self-policed…

A: Fund manager has the responsibility of implementation of the investment strategy of the funds as…

Q: Name two reasons that requiring more disclosure in the securities market is helpful.

A: Disclosure means making the information or facts about the company known to the public, customers…

Q: Which one of the following is not a money market securities. Choose correct option and explain and…

A: Money market-It is a market place where very short term debt instruments are traded.

Q: What major benefits do corporations and investors enjoy because of the existence of organized…

A: Security exchanges serve as secondary markets where sale and purchase of securities is made on a…

Q: In what ways do financial derivatives address specific risks and play a role in risk management?

A: Note: I am solving the first question as per the policy. Please repost the remaining question…