Provide the steps in investing funds in the capital markets through the following securities: 1. Stocks of publicly owned corporation which are previously owned by other shareholders 2. Stocks of privately owned corporations 3. Corporate bonds 4. Treasury bonds
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A: The definition of the given capital is as below:Common stock: These are the ordinary shares that a…
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A: Money market is a component of economy which provides short term funds
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A: Introduction : In simple words, mutual fund is a type of financial intermediaries, who collects…
Q: Which market allows corporations and governments to raise funds by issuing shares of stock and bonds…
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A: Return and risk of investments are mostly proportional.
Q: Rank bonds, common stock, and preferred stock with regard to two factors the possibility of a…
A: Common stock is the stock which does not have preferential right of dividend and which are repaid by…
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: 1. Funds List and provide examples of eight types of specialized funds that concentrate in publicly…
A: Step 1 A Specialty Fund is a mutual fund or other investment vehicle that focuses on the securities…
Q: Advantages of investing in mutual funds compared to individual securities include all of the…
A: Mutual funds are type of investment, which are pooled from the group of investors, which are…
Q: Marketable securities include investments in bonds and in the capital stocks of publicly traded…
A: Marketable securities are shown as current assets in the balance sheet of the company and cash flow…
Q: 1. Investments in debt and equity securities that are held for current resale by banks and…
A: Banks and stock brokerage firms normally deals in purchase and sale of securities. This purchase and…
Q: _________ is a combination of a wide range of investment products such as bonds, shares, securities,…
A: Financial instruments are those used for trading in stock markets and investing in financial…
Q: Mutual funds ____ realized capital gains and income (e.g., dividends received). * Reinvest…
A: Mutual fund is an investment opportunity which pools money from various investors. These funds are…
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: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…
A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…
Q: __________ securities are investments in preferred or common stock that represent ownership in a…
A: Definition of sources of finance: Companies can raise capital in two ways. 1 ) Debt 2 ) By issuing…
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: Discuss risks and returns characteristics of investing in ordinary shares and corporate bonds from…
A: A bond is a financial instrument that represents a loan made by an investor to a borrower (usually a…
Q: reasury stock allows for the exercising of voting rights and collection of declared cash dividends
A: Treasury shares means the share which has been buy back by the company . It will be shown as…
Q: ._______ Funding that comes from the sale of stock
A: Issue of stock or shares is one of the important source of finance being used by the business.…
Q: Discuss the various timing risks a corporate CFO risks when raising funds via bonds or common stock…
A: Bond is referred as the fixed income instrument, which helps in representing the loans that are made…
Q: Stock market analyst. Explain the mutual funds (structure; types; benefits; performance)
A: Mutual Funds: A mutual fund is a collection of money that represents the savings of a group of…
Q: Which of the following can be categorized as Short term sources of finance ?i Equity Sharesii Trade…
A: Short term sources are finances are those sources of finance for the business which is available for…
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Q: In a corporate corporation, which of the following is included in the equity section? Investing in…
A: Equity section of a corporation business represents amount attributable to shareholders of the…
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A: In the financial markets, the share is referred as the unit that are used as the limited…
Q: What is the best explanation for the recent increase in assets held by mutual funds and other…
A: Mutual fund Asset It is the type of financial vehicle that is made up of the pool of money that is…
Q: How to execute the plan on investing in a equity securities?
A: Equity inventment refers to the inventment made by the investors into other companies' stock. Equity…
Q: how would participants interact to facilitate capital market activities?
A: Capital market is the market that deals in financial assets, which have a longer or indefinite…
Q: it is mandatory to issue prospectus when raising funds through private equity?
A: Prospectus is a formal document that is required to be filed with the securities and exchange…
Q: is a combination of a wide range of investment products such as bonds, shares, securities, mutual…
A: A financial asset is tradeable security that can be bought or sold in the financial market. It…
Q: A corporation may raise funds by offering shares of stocks to investors. Express your idea or…
A: A company can raise funds by issuing debt or shares. Both debt and shares have advantages and…
Q: Treasury shares are shares heid as an investment by the treasurer of the corporation. shares held as…
A: Shares are the units of stock issued by a company to the general public in order to raise money from…
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: is a combination of a wide range of investment products such as bonds, shares, securities, mutual…
A: Investors diversify their investment among various asset classes because if one asset class performs…
Q: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the…
A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or…
Q: Not-for-profit organizations should report investments in debt securities at which of the following…
A: A debt security is an investment in bonds which is issued by the government or relevant organisation…
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- Stockholders equity consists of which of the following? A. bonds payable B. retained earnings and accounts receivable C. retained earnings and paid-in capital D. discounts and premiums on bond payablewhich of the following instrument are traded in capital market. check all that apply A. commercial paper b. treasury bills c. cooperate bonds d. bankers appectances e. common stockWhen a company decides to issue capital on the stock market what is the process called? (a) An Initial Public Offering (b) A Rights Issue (c) A Bond Issue (d) An Investment Trust
- Which market allows corporations and governments to raise funds by issuing shares of stock and bonds directly to the public? A. primary market B. secondary market C. private placement market D. all of the aboveWhat is the difference between total assets and total liabilities?a) Dividendb) Bond sinking fundc) Shareholder equityd) Cash BalanceRank bonds, common stock, and preferred stock with regard to two factors the possibility of a substantial increase in value. Rank these same securities with regard to investors' legal claims for repayment on their investments.
- A company’s sources of long-term funds include bonds, preferred stock and common stock. Identify some financing risks associated with these sources and explain how these risks affect the return expected from investments financed by these sources.ASSETS LIABILITIES AND CAPITALa. Current assets b. Investments c. Plant and equipment d. Intangiblese. Other assets f. Current liabilities g. Long-term liabilitiesh. Preferred stock i. Common stock j. Additional paid-in capitalk. Retained earningsl. Items excluded from balance sheetUsing the letters above, classify the following accounts according to the preferred and ordinary balance sheet presentation. _____ 1. Bond sinking fund_____ 2. Common stock distributable_____ 3. Appropriation for plant expansion_____ 4. Bank overdraft_____ 5. Bonds payable (due 2010)_____ 6. Premium on common stock_____ 7. Securities owned by another company which are collateral for that company's note_____ 8. Trading securities_____ 9. Inventory_____ 10. Unamortized discount on bonds payable_____ 11. Patents_____ 12. Unearned revenueIn the context of the different types of securities for investment, match each sentence to the correct type of security. * Bonds Stocks Mutual funds Exchange-Traded Funds (ETFs) Real estate Alternative and complex products Collectibles A financial company receives money from different investors and invests the money in the financial markets, providing professional management, diversification, affordability, and liquidity. Pooled investment funds that offer an investor an interest in a professionaly managed and diversified portfolio of investments, and their shares are traded on stock exchanges. Securities representing a loan an investor makes to the issuer in exchange for interest payments and the repayment of principal at its maturity date. Investments in assets such as rare coins, works of art, old stamps, paintings, that appeal to collectors and investors. Securities that represent ownership in a company, usually providing dividends and the right to vote in the…
- Which of the following can be categorized as Long term sources of finance ? i Equity Shares ii Trade Credit iii Debenture iv Money Market Instruments a. Both Money Market Instruments and Trade Credit b. Both Equity Shares and Debentures c. Only Equity Shares d. Only Money Market InstrumentsCapitalization is: A. A corporation's total investments consisting of common stock and preferred stock only B. A corporation's total investments consisting of the total value of stocks and bonds C. A corporation's total capital consisting of common stock and preferred stock only D. A corporation's total capital consisting of the total value of stocks and bondsIndicate whether the following instruments are examples of money market or capital marketsecurities.a. U.S. Treasury billsb. Long-term corporate bondsc. Common stocksd. Preferred stockse. Dealer commercial paper