how would participants interact to facilitate capital market activities?

Q: Why might a large corporation want to raise long-term capital through a borrowing money from…

A: Raising money from financial institutions increases the likelihood of finding investors who share…

Q: Which of the following statements is true? O The secondary market is important because its existence…

A: SECONDARY MARKET : market where the stock trades.

Q: For a firm that has adequate access to capital markets, is it more reasonable toassume reinvestment…

A: The net present value assumes the reinvestment to happen at the weighted average cost of capital…

Q: Explain the important implications which investors and corporate managers wishing to use the…

A: Investments are the money or funds invested by the investors in some financial instrument in the…

Q: Distinguish between a primary and secondary capital market and discuss the role played these markets…

A: Answer

Q: Which market allows corporations and governments to raise funds by issuing shares of stock and bonds…

A: The primary market is also known as the new issues market. It deals with new security is being…

Q: Primary markets are important to _______ because of _______; secondary markets are important to…

A: Primary Market refers to the market when entity floats its shares for the first time in the market.…

Q: Which of the following is correct regarding the classification of investment in debt instruments as…

A: A debt instrument should measured through FVOCI, if the objective is hold the financial asset to…

Q: Describe some ways other than an IPO thatcompanies can use to raise funds from the capitalmarkets.

A: Additional than initial public offering a corporation might issue stock with the assistance of…

Q: How do bonds provide financing to corporations for their capital projects? What are the key…

A: A bond is a good source of finance. Payment of coupon at a regular interval help in tax savings.

Q: Why does the Businesses go to the capital markets?

A: Capital markets are a place where the process of channelization of savings and investments takes…

Q: How does the following contributed to capital market a) Information disclosure b)Liberalisation…

A: A financial market seems to be a place where consumers trade financial securities including bonds,…

Q: Explain how securities markets provide a link between the corporation and investors.

A: Investment means engaging the funds to generate income for the future. Those who invest their funds…

Q: Several market participants interact in developed markets to organize the exchange of funds from…

A: Description 1: Based on the description, it is classified as investment banks. Investment banks help…

Q: Having researched derivatives for investment portfolios, is there a need for them as hedging…

A: Derivatives as hedging vehicles: Derivatives are nothing but the financial instruments in which two…

Q: 7.) Describe the debt and equity markets? How do organizations obtain financing from each market?…

A: Debt is considered riskless, however equity securities have some inherent risk.

Q: How would you describe the services provided by the investment advisory firms and portfolio…

A: Investment advisory firms and portfolio management companies are the important parts of investment…

Q: What asset allocation strategies and weightings would you consider when investing in international…

A: The key to maximize expected return on the portfolio while reducing the risk is called the…

Q: How were UBI's shareholders' funds and capital sensitive to various regulatory norms?

A: Regulatory Standards lay down all the laws, norms, and regulatory authority who regulates financial…

Q: Which of the following assist companies in raising capital, advise firms on major transactions such…

A: Investment Banks are banks or Institutions that provide various services related to finance to the…

Q: please explain why insider trading is bringing harm to the capital market activity

A: When the investor's buying and selling the securities from the capital market  from the person who…

Q: When valuing private companies, we use public companies as comparables to gain insights into how the…

A: Valuation of private companies is not easy simply because of the fact that limited information are…

Q: Discuss how financial leverage or trading on equity is advantageous to the firm.

A: Trading on equity/ financial leverage is the process to earn higher returns on the debt of the…

Q: Under what conditions might capital structure policy affect the value of the firm. Discuss and…

A: Capital Structure is the structure which is a mixture of debt and equity. The capital structure…

Q: In financing their operations, corporations have the options of raising capital by issuing stock or…

A: corporations have the option of raising the capital by issuing  - stocks (equity capital) - debt…

Q: Accounting for equity investments in other entities depends crucially on the level of influence the…

A: Equity Investment The purpose of accounting the equity investment to know the control of investor…

Q: consider ethical implications of financial reporting and how it relates to acquiring additional…

A: Ethical implication of financial reporting mainly concerns with the numbers that are being reported…

Q: escribe some mechanisms that are used to solve the stockholder/bondholder agency conflict and the…

A: Agency problem means conflict between the stockholders and the management . There are three type of…

Q: What roles are played by an investment bank and its brokeragefirm during an IPO?

A: Investment banks provide various types of services to its clients like underwriting services,…

Q: Which of the following is correct regarding the classification of investment in debt instruments as…

A: A debt instrument invests in fixed-interest generating securities such as corporate bonds,…

Q: Explain the use of Economic Capital in measuring risk among financial institutions and its…

A: Economic capital measure risk in terms of capital. It is necessarily the capital amount that a…

Q: Describe the differences in the underwriting process for an Investment Bank between a “firm…

A: underwriting is the cycle through which an individual or establishment faces monetary challenge for…

Q: a) What are the basic ways for the analysis of investment in equity securities in stock market? b)…

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

Q: Write methodology of impact of intellectual capital on the performance of SMEs/banks

A: Intellectual capital can be defined as the intangible assets which are very essential for the…

Q: In what respect is preferred stock similar to bonds, and in what respect is it similar to common…

A: Preferred stock and bonds are similar in following aspects- - Both preferred stock and bonds have a…

Q: As a micro-enterprise, which sets of financing are the most likely to be used? * A. Banks and…

A: 'Micro-enterprise' is a term that is used to refer to a small business which employ less than 9…

Q: Discuss how capital structure decisions can send useful signals to financial markets and…

A: Capital structure is the combination of debt and equity, which use to raise capital for any company.…

Q: Why do you consider the relationship between the economy and the stock market an integral part of…

A: Economy and stock market movements are directly related. Stock markets reflect the economic…

Q: How does a semi-strong market affect a company’s capital structure? Discuss the possible exposures…

A: Semi-strong is referred to as the form of the market efficiency, which used to exist for the…

Q: What are some factors that affect capital structure decisions made by management? What are the…

A: Capital structure is the mix of debt and equity carrying by the company. The debt and equity are…