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A:
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A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…
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A: There are many factors that influence the prices of securities.
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Q: relationship between financial reports and capital markets
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A: Financial markets can be defined as the market where financial assets or instruments are traded.…
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Q: Define Trading securities.
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: Describe the accounting for investments in equity securities.
A: Equity securities: The financial instruments that claim ownership in the stock of Investee Company,…
Q: Explain accounting for investments in equity securities.
A: An equity security is an investment in stock issued by another company. The accounting for an…
Q: what are the classification of financial market ? Explain its different components?
A: A financial market is an essential part of the financial system. It is defined as a marketplace for…
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A: Explanation : Technical analysis can be understood as the way of appraising commodities that…
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A: Introduction: Financial reporting and stock markets Financial reports are documents that provide…
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A: A stock market is a financial place where multiple buyers and multiple sellers come together to…
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A: Stock market are platform where there is trading of stocks happen so there is buying and selling of…
Q: According to the place of trading, how many kinds of financial markets. Define them?
A: Financial market refers to the place where trading of various financial securities takes place.…
Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market
A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…
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A: In foreign exchange market, currencies are bought and sold. In secondary market, buying and selling…
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A: Unrealized gains and losses: Trading securities are reported at their fair values. Unrealized gains…
Q: Define Issuance of Equity Securities.
A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…
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: What are different types or kinds of financial markets?
A: Financial markets are a marketplace where financial assets such as shares, debentures, bonds,…
Q: Compare and contrast the stock market from bond market. Stock Market Bond Market
A: Stock market Bond Market 1) Here, equity shares are traded. Here, debt securities are traded.…
Q: Why are bond ratings important to firms and investors?
A: Bonds ratings are important for investors. Bond rating is the rating of the issuing company about…
Q: summarize the key features of the markets with the guide questions below. Features Equity Market…
A: The stock market is a location where traders may purchase and sell equities, investors can invest in…
Q: What are financial securities?
A: Financial security can be defined as-“An instrument issued by companies, financial institutions and…
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A: Stock is the share of ownership in the company. Bond is a debt instrument where the investor…
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A: The market where both buyer and seller interact in order to buying and selling of financial…
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A: interest refers to the return that an investor gets for investing his money in the security or…
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A: Accounting: It is the process of recording, classifying, summarizing all transactions of a business…
Q: Summarize instruments traded in financial markets
A: Financial Market is a place where financial securities are traded. In other words, financial market…
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A: Solution- Investors may accept lower return on bonds issued by firms that are subject to governance…
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A: The financial instruments that are tradable and can be used to raise capital in private and public…
Q: What is an asset allocation in investing equity securities?
A: Asset allocation means the investment portfolio is splitted based on the asset categories like…
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- The APR is a. the average annual percentage cost paid on deposits b. the average rate paid on deposits c. the average rate paid for credit d. the average annual percentage cost paid for credit Decreasing the amount of liquid assets held for the purpose of meeting loan demands and deposit withdrawals and increasing the usage of deposit and nondeposit sources of funds paying market rates of interest is known as: a. leverage adjustment b. liability management c. liquidity management d. liquidity adjustment Times interest earned is a measure of the a.gross profit compared to annual interest payments b.net earnings after taxes compared annual interest payments c.operational earnings of the firm (EBIT) compared to annual interest payments d.net earnings before taxes compared to annual interest payments A Bankers’ Acceptance is most commonly used in connection with a. financing inventories b. financing securities c. financing trust accounts d. financing foreign tradeWhich of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of theseActive secondary markets do not: A. provide investors with liquidity. B. raise funds for the issuers of securities C. perform price discovery. D. perform maturity transformation. E. assist to operation of primary market.
- Which liquidity risk measurement strategy is best for a financial institution to take when is unable to satisfy its current liabilities? a.All of the above. b.Liquidity Index. c.Peer group ratio comparisons. d.Financing gap and financing requirement.Which of the following is a characteristic of a money market financial instrument? O A. High risk B. Low risk C. Low credit quality O D. Equity instrumentThe commodities or assets that are traded in financial market are called Select one: a. Financial Institution b. Financial System c. Financial Service d. Financial Banks e. None of the options
- 1. Which of the following models for mathematics of the financial markets is dependent on expectations or probabilities of changes in the value of an underlying asset? A. Monte Carlo Simulation B. Black Scholes Model C. Cox-Ross-Rubinstein Model 2. Models for the financial markets are primarily used for all of the following, except, A. Algorithmic Trading B. Technical Analysis (Short term trading) C. Fundamental Analysis (Long term investing D. All of the above 3. Which among the following organizations use financial mathematics as part of their core operation? A. Investment banks B. Government C. Hedge funds D. All of the above 4. S1: Quantitative finance helps to allocate resources to provide the optimum returns. S2: Financial models are accurate. A. Both statements are true B. Both statements are false C.…An example of asymmetric information in financial markets is that A. the borrower knows more than the lender. B. the lender knows more than the borrower. C. the borrower has a long-term goal while the lender has a short- term goal. D. the borrower and lender have different expectations about financial markets.Organized securities markets a. are examples of financial intermediaries. b. are secondary markets. c. are not subject to regulation. d. transfer resources from savers to borrowers.
- The return on assets ratio is a: Group of answer choices A)Liquidity ratio. b)Solvency ratio. C)Profitability ratio. D)Market indicator ratio. e)None of the aboveWhich one of the following is not a money market instrument? A. Treasury bill B. Negotiable certificate of deposit C. Commercial paper D. Treasury bond E. Eurodollar account Please explain all points without plagiarism Upvote ?sureIII. Information asymmetry vs Information Symmetry: What is addressed in Financial Markets? IV. Savers and Users: Give an example of a scenario where savers and users meet to transact.