An _________________ is a person who performs an independent assessment of the fairness of a firm’s financial statements. 2. The opportunity to buy stock at a fixed price over a specific period of time is known as an _____________________. 3. The market’s perception determines how much the stock is worth.
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1. An _________________ is a person who performs an independent assessment of the fairness of a firm’s financial statements.
2. The opportunity to buy stock at a fixed price over a specific period of time is known as an _____________________.
3. The market’s perception determines how much the stock is worth.
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- Indicate whether the following statements are (True) or (False) and correct the false statements: Primary and secondary markets are markets for short-term and long-term securities, respectively. Public offering is the sale of a new security issue, typically bonds or preferred stock, directly to an investor or group of investors. When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firm's profitability.a. What determines stock market valuations? b. Is a stock's price primarily determined by the discounted sum of future cash flows, monetary policy, or fear and greed? c. Is market timing possible using sentiment indicators such as put/call ratios and Investor's Intelligence surveys? Please ensure to add references and citations.If securities markets are rational and efficient in that they fully and correctly include all available information into a company’s stock price, the resulting price will reflect investors’ unbiased expectations about the company’s future earnings and cash flows. True or False
- You believe that both financing and investing decisions contain fresh information of firm’s value perceived by the investors. Thus, stock price reacts positively or negatively to it. List three decisions each for financing and investing made by firms1. The ________________________ determines how much the stock is worth.2. _________________ is the study of applying specific value to things we own, services we use and decisions we make.3. The process of monitoring managers and aligning their incentives with shareholder goals is known as_______________________. 4. An _________________ is a person who performs an independent assessment of the fairness of a firm’s financial statements.5. The opportunity to buy stock at a fixed price over a specific period of time is known as an _____________________.The price of the share / stock that a company observe from a financial market such as Muscat Stock Exchange is known as ..................... Select one: A. Fundamental Price B. Extrinsic Price C. Intrinsic Price D. Market Price
- A stock market analyst is able to identify mispriced stock by analyzing the financial statements of the company’s stock. what is the efficiency form of this market? Explain.Which of the following is the best reason why the price-earnings method is often used by investors to estimate the fair price of a stock? a) Because the earning multiples are easily found in online financial databases. b) Earnings per share is a known amount that is related to the payment of future dividends. c) Because the price-earnings method gives the same answer as the constant growth method and is easier to compute. d) The price-earnings method has been shown to provide the most accurate price estimate.How might an issue (negative or positive) within the overall stock market impact the company’s stock valuation numbers, other financial variables, or its overall portfolio management? please support by evidence
- Which is true in relation to stock market efficiency? A.Market Price and Intrinsic value are inputs in determining whether a share is overvalued or undervalued B. If markets are truly efficient, each share prices should have a high deviation from its intrinsic value C. Intrinsic Value is readily observed from the stock market daily reports D. Large companies which is followed by many analyst are generally considered as highly inefficientLois selects securities to invest in after carefully examining the fundamentals of a company, using the accounting statements in its annual reports. Peter seeks to earn abnormal returns solely by studying stock price charts and investing based on the patterns he finds in the past prices. Which one of the following statements is correct?a. If Lois earns abnormal returns this violates weak-form market efficiency. If Peter earns abnormal returns this violates strong-form market efficiency.b. If Lois earns abnormal returns this violates strong-form market efficiency. If Peter earns abnormal returns this violates weak-form market efficiency.c. If Lois earns abnormal returns this violates semi-strong form market efficiency. If Peterearns abnormal returns this violates strong-form market efficiency.d. If Lois earns abnormal returns this violates semi-strong form market efficiency. If Peterearns abnormal returns this violates weak-form market efficiency.e. If Peter and Lois both earn abnormal…How can the Stock price be a good indicator of your company's financial health and may also reflect the market's attitude?