Does the FASB considers options as securities or as cash?

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: What is the difference (Who can invest?) between Money Market, Bond Market, Equity Market, Foreign…

A: The money market is the part of the financial market that invests in short-term debt with low risk…

Q: What are the pros and cons of All Cash deal vs Stock deals and Taxes

A: The question is based on the concept of merger and acquisition (M&A) by use of different methods…

Q: How do Capital Guaranteed Notes function?

A: Capital notes are short term unsecured debts which are generally issued  by firms in order to pay…

Q: Explain the statement “The money market is necessary but not sufficient for the liquidity of…

A: Money market instruments would be considered as investments under short term securities. These…

Q: What are some of the exempt securities in investor protection and why do we need these securities…

A: Securities are the financial instruments whose holders have the claim over the issuing authority.…

Q: With example, differentiate between a physical settlement and a cash settlement in the derivatives…

A: A derivative market is a financial market in which financial derivatives such as futures contracts,…

Q: What is Hedging Securities? Explain.

A: Hedging is a strategy where investors try to minimize the risk of loss on his portfolio by using…

Q: What are the advantages and disadvantages of exchange-traded funds versus mutual funds?

A: Mutual funds refers to a pool of investment. Mutual funds can be of two types:  closed ended and…

Q: capital market?

A: Introduction: Financial market is a market where buyers & sellers engage in the activity of…

Q: What is a private placement of securities?

A: Definition:   Debt securities: The financial instruments which are bought by investors, or…

Q: What are the two important differences between trading securities and HTM investments?

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: What is ETF, exchange-traded fund?

A: An ETF is an uncommon kind of mutual fund that permits financial investors to trade their shares…

Q: What are some important differences between mutual funds, Exchange Traded Funds, and hedge funds?…

A: Answer: The differences between hedge funds, mutual funds and exchange traded funds are as follows,…

Q: State the purposes for which the securities premium reserve can be utilised.

A: Securities premium:Securities premium is the gain earned by the company, by issuing a share of a…

Q: What agencies regulate securities markets?

A: Securities market: That is the place securities exchanging, for example, stocks and bonds, happens…

Q: 1. Which one of the following is not a money market security: a. Treasury Bill. b. REPO. c. LIBOR.…

A: Money market securities are short term securities or instruments generally issued by government,…

Q: What are the primary risk of trading in the fed funds markets?

A: Fed funds are short-term funds that move between different financial institutions. Generally  the…

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: How do investors estimate the risk of domestic vs overseas securities?

A: This issue clarifies the risk of domestic vs. international securities.

Q: How do mutual funds differ from UITFs?

A: Mutual Funds are constructed with the help of a pool of money that is collected from many investors…

Q: What are some examples of financial instruments that can be used for hedging interest rate risks,…

A: Interest rate risks are the risk of losing value of the investment as the market interest rate…

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: What are trading securities?

A: Trading securities are a form of investment by a company. Here securities are being purchased for…

Q: How do forwards, futures, and swaps hedge risk?

A: A forward contract may be a personalized contract between 2 parties purchasing or offering an asset…

Q: What does issue of debentures for consideration other that cash means?

A: Debenture Issued for consideration other than cash:A company can purchase assets from other…

Q: What does the Securities Act of 1933 cover?

A: Securities and Exchange Commission (SEC): SEC is an independent organization of the federal…

Q: Which of the following is the not the function of the financial markets?

A: Option Explanation 1 Financial market helps in creating habits of small savings 2 It helps in…

Q: What is meant by issue of debentures as collateral Security?

A: Collateral is an asset or property that is given by a borrower to lender to secure the loan.…

Q: What is marketable securities?

A: Balance sheet has different components. On the basis of liquidity, cash and cash equivalents are the…

Q: Which of the following types of investment carries the greatest risk? O Stocks O Bonds O Mutual…

A: Option Explanation Stock Iit is risky because it depends on movement of market. Bonds Bonds have…

Q: What is the definition of hedging securities? Explain.

A: Introduction:Hedging is a strategy in which investors attempt to reduce the risk of loss on their…

Q: What are financial securities?

A: Financial security can be defined as-“An instrument issued by companies, financial institutions and…

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: What is meant by securities exchange?

A: A stock exchange, usually known as a securities exchange. This is a market where the stockbrokers…

Q: What is the difference (How to invest?) between Money Market, Bond Market, Equity Market, Foreign…

A: Investment refers to the asset acquired for the purpose of generating income or profits. It…

Q: Which one of the following is NOT a 'Money Market Instrument? Select one: O a. Treasury Bills O b.…

A: Money market instrument refers to the short-term maturity financial instruments which are having a…

Q: What is the difference between GAAp and IFRS in financial instruments?

A: Accounting: It is the process of recording, classifying, summarizing all transactions of a business…

Q: Which one of the following is not a money market instrument? a. Equity Shares b. Bankers'…

A: money market instruments are short term liquid instruments which are highly liquid.