Follow-on and stock rights offering may be done through either primary or secondary market.

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: What is the major reason for a forward stock split?

A: Stock Split: Stock Split is a scheme in which a company’s total number of shares outstanding will…

Q: According to the Signaling Theory, issuance of common stock is a negative sign. Do you agree or…

A: Firm issues different securities to arrange the funds to meet the financial requirements. Debt and…

Q: sed on the Signaling Theory, issuance of common stock is a negative sign.

A: Introduction : In simple words, the signalling theory states that the actions made by the company…

Q: 7. Which is incorrect about public offering? a. It is sold to limited to qualified investors. b. It…

A: Public offerring is made when the companies need to expand their investor base and gets listed on a…

Q: Discuss similarities and differences between seasoned offerings and right issues for stocks.

A: Firm issues various securities to arrange the funds for the firm’s requirements. Stock or common…

Q: Explain which method you recommend they use and why. (a stock redemption buy-sell agreement or a…

A: Stock Redemption buy sell agreement : This agreement is also known as buy-out agreement or business…

Q: What are the pros and cons of using options traded in the over-the-counter market and in an exchange…

A: Options can be defined as those contracts which allow an investor to purchase or sell a security on…

Q: What is meant by efficient market hypothesis? The third form of EMH, which suggest that all type of…

A: Efficient Market Hypothesis (EMH) states that market has all the information been factored in the…

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market is an organized market which meets short term requirements of the borrowers and…

Q: Discuss Different situations or reasons that may lead to stock repurchases? Also provide an…

A: Stock repurchasing : Stock repurchase or buyback of shares is a process where a company purchases…

Q: Does the if-converted assumption apply only to diluted earnings per share? O A. The if-converted…

A: If-converted assumption is used to calculate value of converted debenture or preference share,if…

Q: Explain why common stock is itself like a call option. What plays the role of the exercise price and…

A: There are two types of options in the market: call options and put options.  Call options allow the…

Q: 4. How the Stock valuation is normally made? Cost or net realizable value whichever is more Cost and…

A: Stock valuation is the process of analyzing the intrinsic worth of the stock possessed by the entity…

Q: Is an initial public offering an example of a primary or a secondary market transaction?Explain.

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: How are shares issued at full market value treated differently from rights issues? Explain why it…

A: Destitute organizations will move to rights problems to fund-raise once they actually would like it.…

Q: OOutline some different approaches to stock control.

A: Stock control, also known as inventory control, is used to show how much inventory you have on hand…

Q: Which of the following statements is/are FALSE regarding the differences between the New issue…

A: Primary market is the part of capital market which deals in newly issued securities. It facilitates…

Q: In your opinion, what is the most compelling justification for a forward stock split?

A: This question explains about the most compelling justification for a forward stock split

Q: Explain why it is or isn’t optimal to exercise early (a) an American call and (b) an American put…

A: Options are the rights for the holder to sell or buy the stock at the future date with future…

Q: Q1: According to the strong-form efficient market hypothesis, stock prices fully reflect   a. all…

A: The term stocks or shares issued by a company for the purpose of raising capital from the external…

Q: Describe and compare (i) the Simple Earnings Capitalisation Model, (ii) Burgstahler & Dichev's…

A: (i) Simple earnings capitalization model: Simple earnings capitalization model determines the value…

Q: i) Identify THREE (3) major differences between primary market and secondary…

A: Secondary markets transfer liquidity benefit to the primary market.

Q: Stock appreciation right would normally be settled through

A: Second option is wrong because stock appreciation right is not settled through issue of share…

Q: 1. The New York Stock Exchange is primarily a. A secondary market. b. An organized auction market.…

A: A secondary market is a market where shares of company are traded among the sellers and prospective…

Q: According to the signaling theory, issuing common stock is negatively perceived. Is this true or…

A: Signaling theory focuses on how issue of debt and equity are perceived by the investors and how…

Q: Define Restricted Stock Awards.

A:

Q: ket transactions are made in marketable s

A: Introduction : The acceptance by the Borrowers or a Subsidiaries of funds from an exchange of…

Q: Question 3: How do you find whether a stock is undervalued or overvalued? Give one example and…

A: A stock is a unit of total capital raised through the issuance of shares in the stock market wherein…

Q: Which of the following is not the function of the secondary market Select one: a. Marketability to…

A: Following are the function of the secondary market

Q: Which of the following differs in GAAP and IFRS?

A: IFRS and GAAP are two accounting standard board that ensure accounting rules , standard,…

Q: Is Preferred stock a hybrid between common stock and debt? Explain how?

A: Answer: Preferred stock is identified with a preferred name. Preference stock is often granted…

Q: he ____ (acronym) was a New Deal program that acted as the “stock market police”.

A: Stock market is a market where stocks of public listed companies are traded. Brokers are appointed…

Q: Select the incorrect statement regarding capital markets a Capital markets make securities liquid…

A: Financial markets are the marketplaces that help in the trading of financial assets, instruments, or…

Q: The strong form of the EMH states that all related information including inside information must be…

A: Strong form of market efficiency states that information whether private or public is reflected in…

Q: With the aid of examples, highlight the differences between the following terms: Par value and No…

A: Answer are as follows

Q: In your opinion, should a public listed company pay attention to the market price of its common…

A: Market prices are decided by the demand and supply(D/S) of the security and investors perception…

Q: Answer the following questions correctly. 1. What is the treatment of a delinquent subscription?

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

Q: The fair value of a stock can be determined by the factors of market forces Select one: a. True…

A: Fair value of stock is its fundamental value. It is the intrinsic value of the stock and does not…

Q: All of the following are key similarities between GAAP and IFRS with respect to accounting for…

A: Earnings per share: An amount available as earnings for each of the common shares outstanding for a…

Q: Why is stock exchange referred to as a secondary market? What functions does it perform?

A: Primary Market: In primary market shares are directly offered to public for subscription . it is…