Explain the classes of shares and their characteristics.

Q: Define trading venue

A: Definition:   The facility where multiple buyers and seller trade financial instruments. It allows…

Q: Contrast term stackholder and stakeholder

A: It is assumed that there is a typo in the question and the question is asking to contrast the term…

Q: Describe the exchanges in nonmonetary asset.

A: A non-monetary transaction refers to a commercial or business transaction that happens without the…

Q: Define corporation

A: Corporation is a legal entity separate from its shareholders. Just like an individual, a corporation…

Q: What is partial public offering?

A: Public offering is sale of shares to the general public. The company issue shares and raise through…

Q: What is merger?

A: Merger: It is a deed that joins 2 existing firms into one new endeavor. There are a few sorts of…

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: What is proportionate consolidation? and how will it affect the JV?

A: The proportionate consolidation is the method in which the company reports the assets and…

Q: What is meant by convergence of US GAAP?

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

Q: Describe Trade-Off theory.

A: Trade-Off theory suggests that there is an optimal capital structure that maximizes the value of the…

Q: Define compound interest

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: ership

A: The voting rights associated to shares are voting rights at the company's general meetings, which…

Q: entity collected entity remitted plied first the cc е сс

A: Account receivables are the balances of customers that have not paid their dues for services…

Q: Define acquiring company

A: The acquisition means when one company buys the more than 51% stake in another company. Companies…

Q: How do the FCFE, corporate FCF valuation, and compressed APV models differ? How are they similar?

A: FCFE stands for free cash flow to equity, FCF indicates free cash flow to the firm and APV refers to…

Q: Explain connecting affiliation and mutual ownership. Explain the differences between the two.

A: In a connecting affiliation, at least one subsidiary has stock in the parent company. ... In a…

Q: Define the term Fair Value Hierarchy.

A: Fair value: A value which is determined based on the market situation, business demand, and the…

Q: Define tender offer

A: Tender: A tender is an invite to bid for a scheme or take an official proposal like a takeover bid.

Q: Define targeted share repurchases

A: One targeting firm tries to avoid a hostile acquisition by purchasing a prospective customer's own…

Q: Briefly describe the fair value hierarchy.

A: Fair value: A value which is determined based on the market situation, business demand, and the…

Q: Define signaling content, and explain how it affects dividendpolicy

A: Signaling implies communication of information to an audience through an action or an indication.…

Q: Define takeover

A: When a company purchases another company for the purpose of expansion of business is termed as the…

Q: Explain the following terms, Bid Rate and Ask rate

A: Bid and Ask rates are two common rates used in financial markets especially in the foreign exchange…

Q: Distinguish between primary markets and secondary markets

A: Primary-market-The primary market is the place where the new bonds, stocks, etc are sold to acquire…

Q: What is incorporation by reference?

A: Securities and Exchange Commission (SEC):   The board which set rules for the companies for…

Q: What is understood by Incorporation by reference?

A: Securities and Exchange Commission (SEC):   The board which set rules for the companies for…

Q: Differentiate between primary and secondary markets.

A: Primary market is a market where shares and securities are created and sold for the first time.…

Q: EXPLAIN EASY WAY TO GET A CONSOLIDATED STATEMNET OF FINACIAL POSITION

A: As per IFRS 10 Consolidated Financial Statement are the Financial statement of a group presented as…

Q: Define Share Issue Costs.

A: Share:   It represents the unit of ownership interest in a corporation. A capital of a company is…

Q: What mathematical relationship is used among proprietary account balances?

A: Answer:-  Mathematical relationship meaning:- A mathematical relationship in the general term can be…

Q: Define the term Acquisitions.

A: An acquisition is when one company purchases most or all of another company's shares to gain control…

Q: What are the similarities and differences between IPOs and direct listings?

A: The question is based on the different methods of raising funds by selling shares to the public for…

Q: Define S corporation

A: The S corporation is a tax election that legal business entities can choose to elect for taxes…

Q: Define arbitrage

A: Introduction: Usually, an arbitrage opportunity is used when there is the option of purchasing an…

Q: Define vested

A: Vested in simpler terms means to confer or bestow power, the authority on someone. In commerce and…

Q: The preference share can be redemed

A: The preference share can be redeemed : Redeemable preference shares are those shares where the…

Q: Describe the decision process for distribution policy and dividendpayout. Be sure to discuss all the…

A: Dividend is defined as the share of profits that is payable to the shareholders of the company.…

Q: Differentiate between public and private syndications?

A: Syndicate: A syndicate is a provisional agreement of businesses that connects together to manage a…

Q: What is GAAP? When was it formed?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles (GAAP) is…

Q: Define signaling hypothesis (dividends)

A: Introduction: This question is based on the concept of dividend theories in capital structure is…

Q: Differentiate and elaborate bid rate and offer rate.

A: Following is the answer to the question.

Q: Differentiate between private and public markets.

A: There are two types of markets for dealing with securities like stocks & bonds. They are public…

Q: Sall Corporat

A: FIRSTLY, we have to understand the meaning of cumulative and non cumulative shares: 1. Cumulative…

Q: What is intra group transactions

A: Inter group transactions are the financial or commercial transactions which involve two companies of…

Q: Define subsidiary

A: A corporation refers to a legal entity that is completely distinct from its owners. It is allowed to…

Q: Explain “Information content” and “Clientele effect” in context of Dividend theories.

A: The term "information content of dividends" is widely cited in the finance literature. The…