Describe the Sale of Trading Security Investments.

Q: What is investment-grade bond?

A: Bond is a financial instrument. Issuer issues bond to raise the fund and payback the amount at the…

Q: Why are held-to-maturity securities treated differently from other investment securities?

A:

Q: Explain how to Adjust Trading Security Investments to Fair Value.

A:

Q: What are the Derivative Securities? Elaborate in detail the different types and transactions of…

A: Derivative Contracts are used by parties to earn profit by executing a transaction at a favorable…

Q: Distinguish between margins in the securities markets and margins in the futures markets.

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Q: Explain accounting for derivatives.

A: Derivatives: Derivatives are some financial instruments which are meant for managing risk and…

Q: Under which of the following markets securities are newly issued? a. Primary Market b. Intermediary…

A: Financial security is a tradable asset issued by business entities and governments to raise capital…

Q: Financial Market for previously issued securities are bought sold in: a. Secondary market b. Primary…

A: Capital market is the market, where funds required for long term investment will be bought from the…

Q: Describe the main characteristics of the capital and money markets, with particular reference to the…

A: Financial markets are the markets where the buying and selling of financial instruments take place.…

Q: Evaluate other major issues related to investments in debt and equity securities.

A: Business owners can utilize a variety of financing resources, initially broken into two categories,…

Q: With example, differentiate between a physical settlement and a cash settlement in the derivatives…

A: A derivative market is a financial market in which financial derivatives such as futures contracts,…

Q: Define Trading securities.

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Define the terms, or give short explanations.     -arbitrage -business risk -call -cash…

A: Arbitrage: The practice of profiting from price discrepancies in various markets with no risk…

Q: What are the two important differences between trading securities and HTM investments?

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: Methods/instruments that banks use to hedge the risks pertaining trading securitie

A: Hedging is the process of risk management through which an investor mitigated and reduce its risks…

Q: Explain accounting for investment in bonds.

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: Marketable securities bought and held primarily for sale in the near term are classified as:  a)…

A: Marketable securities are securities which is unrestricted and can be bought or sold on a public…

Q: Identify the major derivative securities used to hedge against risk.

A: Answer: Usually, the primary aim of derivative securities trading is to hedge risk against the…

Q: Briefly explain the role of underwriters in the issuance of securities.

A: An underwriter is referred to as the party, which used to evaluate as well as assume that another…

Q: What are the risks associated with bond investing? How can each risk category be quantified and…

A: This question explains about bond investing's hazards, as well as the risk category, must be…

Q: Explain Important Terms Used in the Market for CMOs and Derivative Securities?

A: CMO (Collateralised Mortgage Obligation): The obligation to repayment ensured by the mortgage to be…

Q: What are bonds? What are their features and how are they traded?

A: Bonds are debt securities issued by corporations, municipalities, and governments to raise capital.…

Q: Differentiate between the following types of markets: physical asset vs. financial markets, spot vs.…

A: Note : As per the guidelines, only first three parts will be answered.

Q: Explain how to Adjust Equity Investments to Fair Value.

A: Fair value method is used when a company buys stock of another company but the ownership stake is…

Q: explain The Effectiveness of Technical Analysis in Stock, Bond, Gold, Currency, and Commodity…

A: The technical analysis is that analysis in which the trend of the price of the stock, gold, bond and…

Q: What is Security Market Line (SML)? How does SML guide in accessing overpriced or underpriced…

A: What is Security Market Line (SML)? The Security Market Line (SML) is the graphical representation…

Q: Marketable securities are a. long term in nature b. are examples of bonds c. traded in the money…

A: Marketable securities are easily and affordably convertible into cash. They are highly liquid…

Q: Determine appropriate hedging and risk management strategies using a mix of underlying and…

A: Derivatives are financial instruments whose values are derived from other assets such as stocks,…

Q: In discussing how to value and report investment securities, your text also talks about trading…

A: Investment in securities made by the management for the objective of utilizing their idle cash in…

Q: iscuss  the inherent risks of Madoff Investment Securities

A: Madoff Investment Securities was run by Bernard Madoff. In fact it was one of the largest Ponzi…

Q: Explain bond redemption.

A: A Bond is an instrument which guarantees fixed return to the investor. A bond involves no risk so…

Q: A) What is the difference between trading securities and available for sale securities? B) Describe…

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

Q: Can I Dr. Investment  also? (for Avaliable for sale securities?)

A: Lets understad the basics. Available for sale security is as name suggest a security which are…

Q: Why we need tocalculate valuation of securities and yield to maturity of a security?

A: One of the important decisions that should be taken by the investor is to the valuation of security,…