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Q: What happens to the buyer's assets and equity when they buy treasury stock?
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Explain the statement “The
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- what is meant by “The money market is necessary but not sufficient for the liquidity of securities on the stock market”why is money market necessary but not sufficient for the liquidity of securities on the stock marketChoose the correct statement about different types of financial markets: a. Capital market is the market for short-term government and corporate debt securities b. None of these c. Money market is market for long-term financial instruments d. Stock market is the market where participants can issue and trade stocks
- The way in which the price of securities determined in Financial Markets is: a. By mobilization of savings b. Through frequent interaction between investors c. Providing liquidity to non- tradable assets d. None of theseexplain the statement"The money market is neccessary but not sufficinet for the liduiidity of securities on the stock market"The cash flows associated with common stock are more difficult to estimate than those related to bonds because stock has a residual claim against the company versus a contractual obligation for a bond. Group of answer choices True False
- If most participants in the stock market do not follow what is happening to monetary aggregates, prices of common stock will not fully reflect information about them. Is this statement true? Explain your answerWhich of the following is not the function of the secondary market Select one: a. Marketability to securities b. Liquidity of securities c. None of these d. It gurantees fixed rate of return to the investorWhich of the following are money market instruments? Check all that apply. Common stocks Commercial paper Corporate bonds Treasury bills Preferred stocks A financial instrument whose value is derived from the value of an underlying asset is called a (Speculation, hedge, derivative)
- Which one of the following is not a money market instrument? a.Equity Shares b.Bankers' acceptances c.Eurodollar CD d.Repurchase agreementWhich statement is not true regarding the market portfolio? Group of answer choices a. It includes all publicly-traded financial assets. b. It lies on the efficient frontier. c. All securities in the market portfolio are held in proportion to their market values. d. It is the tangency point between the capital market line and the indifference curve.Secondary Market can be best described in which of the following statement? a. It is a market for an unlisted company to raise equity capital. b. It is a market where securities are issued through private placement. c. It is a market in which short-term money market instruments such as Treasury bills are traded. d. It is a market in which preowned securities are traded.