Active secondary markets

Q: Which of the following is true with Primary Market? Select one: a. Deals with old stocks issued by…

A: A primary market is a place where securities are created and issued for the first time. It is the…

Q: Securities exchanges create efficient markets that do all of the following EXCEPT

A: Because there are primary markets and Secondary Markets which investors have to take the opportunity…

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: Investment bank trade securities in the ? a. Secondary market b. Primary and secondary market  c.…

A: Here, the securities are the financial securities which will be traded in the market. They can be…

Q: Which of the following is most likely to expose the holders to counterparty credit risk? A.…

A: Counterparty credit risk is the risk where the party involved in the transactions makes default in…

Q: Does fundamental or technical analysis provide better knowledge for investing in securities?

A: Fundamental analysis is the method of measuring the intrinsic value of a stock by using the…

Q: For investors, the function of secondary markets is to provide marketability for the shares of…

A: Secondary market is a type of market where investors buy and sell securities or assets from other…

Q: hich of the following is correct?   Transactions within the spot market can be used to mitigate and…

A: Hedging can be done by using forward and future and option market and can be used to mitigate spot…

Q: Unsystematic risk is * a.the risk associated with movements in securities prices B.higher when…

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Q: 1) The capital market consist of : A. Treasury bill B. Certificate of deposit C. Purchases agreement…

A: Since more than three sub parts are posted at a time, the answer for first three questions is only…

Q: Explain concepts such as time value of money, present value and discount rate, and explain how they…

A: Time value of money is a concept which says the value of money today is worth more than the value…

Q: Which of the following is NOT an external method of interest rate risk management? *       A. Using…

A: An interest rate risk is the risk of negative affected of the value of an investment by unexpected…

Q: Strong form efficient market hypothesis states that stock prices reflects all the information in a…

A: Efficient market hypothesis has three versions - weak form, strong form and the semi-strong form.

Q: A fundamental analyst uses the discounted cashflow method to value firms, and has a short-term…

A: Fundamental Analysis is a technique to value firms on the basis of their fundamentals i.e. their…

Q: explain the statement"The money market is neccessary but not sufficinet for the liduiidity of…

A: Money market is an instrument used to provide flow of short term funds in the economy. It consist of…

Q: According to the efficient market, which of the following are not true? Select one: O the market has…

A: The Efficient-market hypothesis also known as EMH is a hypothesis in finance which states that…

Q: Which of the following most accurately describes fundamental analysis? a. Makes use of trend chart…

A: Fundamental analysis involves study and analysis of company fundamentals and value of company on…

Q: Marketable securities are also considered as liquid assets but not as liquid as cash. * Right O…

A: Correct answer: Right. Cash and the Marketable securities both are types of liquid assets. A liquid…

Q: Which one of the following is the hypothesis that securities markets are efficient?   Multiple…

A: The security market is a subset of the larger financial market in which securities can be bought and…

Q: Elaborate the following statements:  A.    Portfolio return is a linear combination of individual…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: It is more provident that equity financing is more favored because of the ultimate risks associated…

A: Equity financing entails raising of funds through sale of equity shares while debt financing entails…

Q: Investment bankers perform which of the following role(s)? A. Provide advice to the firms as to…

A: Investment bankers performs a variety of roles in the market.

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: Which of the following statement is true? a. In brokered markets, buyers and sellers confront…

A: Introduction: The primary market is where the new offerings are issued to the public. The companies…

Q: An increase in the riskiness of financial securities results in a_______ in the supply of loanable…

A: The riskiness of financial securities or financial risk is defined as the threat of losing the money…

Q: Marketable securities are liquid financial instruments that can be quickly converted into cash at a…

A: Cash and cash equivalents are the most liquid current asset items included in quick assets, while…

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

A: The question is based on the concept of Financial analysis.

Q: ndicate whether each statement is true or false. a) A naive hedge is the hedge of a cash asset on a…

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

Q: hich of the following is not an advantage of a repurchase agreement (repo) market? a.…

A: A repurchase agreement (repo) is a form of short-term financial support for government mortgage…

Q: What is meant by coupon stripping in the Treasury market?

A: Coupon stripping is the separation of an instant bond's periodic interest bills from its foremost…

Q: An important element in accounting for investment securities concerns the distinction between its…

A: Investment securities are those that are acquired with the intention of investing in the future. It…

Q: The efficient market hypothesis assumed that market is perfect in which securities are typically in…

A: An efficient market hypothesis (EMH) used to the financial market used to have an efficient, which…

Q: Describe the process of a money market hedge for payables. Do not rewrite the formula, explain it.

A: Money market hedging helps the domestic company to reduce the exchange rate along with the currency…

Q: Derivatives are used in risk management because they _____. a. diversify risks b. hedge risks c.…

A: In the world of Finance, risk can be classified into various types, such as :- Credit risk - It is…

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: ______ is a method of evaluating securities by identifying a stock trend such as prices and volume…

A: Financial securities are the financial assets that are traded in the financial markets. Financial…

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: It is said that open market transactions involve the sale or purchase of securities by the BSP to…

A: Central bank of country do open market transactions to increase or decrease money supply in markets.

Q: Which of the following is not a prudent practice in hedging against transactional exposures?   A.…

A: Transactional exposures mean the risk which involves in international trades. Risk of changing in…

Q: Why is it important that in an underwriting the investment banker does not overvalue (overprice) or…

A: Companies/Firms appoint investment bankers as underwriters which provide underwriting service and…

Q: Secondary Market can be best described in which of the following statement? a. It is a market for an…

A: Stock market there are buying and selling of securities are done depending on demand and supply of…

Q: investment banker does not overvalue (over price) or undervalued (under price) the securities? If…

A: It is very important that investment banker should value the securities properly in terms of…

Q: Which of the following statement is true? ( a. In brokered markets, buyers and sellers confront each…

A: The stock market is a platform where shares/securities are exchanged amount buyers and sellers. The…

Q: Capital market securities are usually more widely traded than shorter-term securities and tend to…

A: There are various types of markets capital market or short term securities