Define spot markets

Q: What is the over-the-counter (OTC) market?

A: Types of Over-the-Counter Market: Inter-Dealer Markets: The different dealers conduct…

Q: Define Efficient Markets Hypothesis (EMH

A: EMH states that prices of the securities (like stocks) reflect all the available info and data. The…

Q: Explain risk arbitrage

A: It is a venture system to benefit from the narrowing of a hole of the exchanging cost of an…

Q: The hypothesis that market prices reflect all publicly-available information is called efficiency in…

A: Efficiency of stock market is determined by the effect of information whether publicly available or…

Q: Define market risk

A: Market risk is the risk of an investment due to over all volatility in the market returns due to…

Q: Explain primary market

A: Primary market is the market under which the securities of the companies are created. In the primary…

Q: Define trade-off theory

A: Answer: The trade-off theory suggests a leveraged company’s valuation is equal to the value of an…

Q: Define secondary market

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: What is a primary market?

A: Financial Markets refer to the place where financial assets or securities are being created,…

Q: Explain HPRs and Inflation?

A: Answer: Holding period returns (HPRs): Holding period return (HPR) is one of the investment…

Q: What is meant by convergence of US GAAP?

A: IFRS (International Financial Reporting System) is gaining popularity and momentum across all the…

Q: What is a market order? What is a limit ordrer?  how are each executed?

A: Market order is a type of instructions in the stock market to purchase or sell the securities…

Q: What is market multiple method?

A: The market multiple methods is a hypothesis of valuation, in view of the reason that comparative…

Q: Define the term current market value.

A: The current market value (CMV) gives parties interested in making a transaction the approximate…

Q: What is secondary markets?

A: A company issues securities to raise funds. The securities are first issued in the primary market…

Q: Define swap

A: Swaps are the financial instruments that allow the company to revise their debt by taking advantage…

Q: Critically discuss the efficient market hypothesis

A: Efficient Market Hypothesis: The market is effective in handling data . Markets are correctly and…

Q: Define alternative trading system (ATS)

A: An alternative trading system (ATS) is not an exchange-regulated, yet a position that suits its…

Q: Differentiate primary markets from secondary markets?

A: Financial Markets refers to the place where financial assets or securities  are being created ,…

Q: What is an alternative trading system (ATS)?

A: Alternative trading systems are generally helpful for people like investors & professional…

Q: What is high-frequency trading (HFT)?

A: High-frequency trading, also recognized as HFT, is a trading technique used to convert a huge number…

Q: define volatility

A: Volatility is a rate at which the cost of a security increments or diminishes for a specified set of…

Q: Explain prime rate

A: Introduction: Usually an interest rate is the amount that a lender pays calculated as a percentage…

Q: commercial market trade industries market segmentation inelastic demand

A: Market is a place where parties gather to exchange goods and services. Parties involved are known as…

Q: Describe the market multiple approach.

A: Answer: A multiple market analysis is a method of financial modelling which assigns a value to an…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…

Q: Define Black-Scholes option pricing model

A: Assumptions of Black-Scholes option pricing models: There is no dividend during the lifetime of the…

Q: EXPLAIN ALL YOU KNOW ABOUT EMT (EFFICIENT MARKETS THEORY).

A: Efficient  market theory  also known as efficient market hypothesis  is a hypothesis that states…

Q: AA-DD model How is DD curve derived? Which markets does it represent?

A: The AA-DD model represents a synthesis of three markets models: the foreign exchange market, the…

Q: Define Public markets

A: A public market is the place where various types of small businesses are operated independently by…

Q: What is market risk premium?

A: Market risk premium is an additional return investor will receive for holding the additional risk in…

Q: Define the following terms: primary market, secondary market, capital market, money market.

A: The primary market is the market under which the securities of the companies are created. In the…

Q: Define market portfolio

A: A pool of investments that comprises of all the available investment opportunities across the globe…

Q: What’s the difference between primary markets and secondary markets?

A: In a primary market, securities are created for the first time for investors to purchase. New…

Q: Explain risk premium

A: An investor investing in a risky asset would demand a greater interest rate to compensate for the…

Q: Market conditic characterized b

A: Since as in the given case, the cost of commercial paper is a recommended action, because it is…

Q: The central issue of efficient market concens: O regulations O structure O participants O…

A: Market efficiency is the ability of markets to process the information quickly and generate the…

Q: What is the meaning of Resource Market?

A: In business terms, anything which acts as input and contributes to the production process refers to…

Q: Define Arbitrage Pricing Theory (APT)

A: Arbitrage is the method of making profit from the temporary change in the cost of shares by buying…

Q: Define investors.

A: Investment refers to the idea of involving money into the purchase of goods or some asset that will…

Q: Explain portfolio

A: A portfolio is like a bucket in which all financial investments are held like stocks, debentures,…

Q: What is market portfolio?

A: A pool of investments that comprises of all the available investment opportunities across the globe…

Q: What is high-frequency trading?

A: The most common trading platform (HFT) is an automated trading platform used by major investment…

Q: Define market risk premium

A: Market risk premium  It is defined as a variance between an expected rate of returns on the market…

Q: What is the difference between primary secondary markets?

A: In the given problem we  need to select the correct option of the three options given.

Q: What is the difference between smart beta ETFS and index ETFS?

A: Smart beta exchange traded funds (ETFS) is a systematic approach which gives the advantage of active…