explain the statement"The money market is neccessary but not sufficinet for the liduiidity of securities on the stock market"

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: 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 are defensive stocks and What is an efficient set of securities? Is it true that a market…

A: aCCORDING TO THE RULE, BECAUSE YOU HAVE POSTED MULTIPLE QUESTIONS, WE WILL ANSWER THE FIRST QUESTION…

Q: What is the difference between the dealer and the broker in the stock market? (Explain clearly.)

A: Broker:   A broker is a person who will buy and sell securities for their client.   Dealer:   A…

Q: sed on the Signaling Theory, issuance of common stock is a negative sign.

A: Introduction : In simple words, the signalling theory states that the actions made by the company…

Q: (1) If derivatives can be so risky, why do so manybusinesses continue to use this market to…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: A stock’s beta is a key input to hedging in the equity market. A bond’s duration is key in…

A: The volatility of the stock relative to the changes in the market is measured by beta. Suppose the…

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: securities in an inefficient market are in equilibrium and fairly priced in the sense that the price…

A: Market can be efficient and inefficient

Q: Why might the stock price changing make sense within the context of risk and return?

A: Stock price movement is dependent on various factors which would eventually impact the required rate…

Q: Does the FASB considers options as securities or as cash?

A: FASB is the Financial  accounting  standard  board

Q: The small firm effect refers to the observed tendency for stock prices to behave in a manner that is…

A: The small firm effect: In the financial markets, the small firm effect refers to the phenomenon that…

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: 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 one of the following is correct about individual stocks? Individual stocks are exposed to the…

A: Systematic risk is also known as non-diversifiable risk, and it exist for entire market. It arises…

Q: Who is responsible for monitoring stock in the stock market? Who issues a stop loss on stocks?…

A: The regulating agencies of stock market are responsible for stock markets monitoring. Different…

Q: Both individuals and companies monitor the stock market. Explain how their reasons for doing so…

A: individual monitor their stock price by the following steps 1) keep updated about the latest news…

Q: Can an investor eliminate market risk from a portfolio of common stocks?

A: Beta is a systemic risk of this kind. The risk integral to the business or segment as a whole is…

Q: The weak form of the efficient market hypothesis states: All information is known by all market…

A: According to random walk theory, also known as the Efficient market hypothesis, there are three…

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

A: Efficient market hypothesis is a hypothesis that states that markets are efficient and returns…

Q: Explain the role of speculators in determining the price of a security on the stock market

A: Stock market are platform where there is trading of stocks happen so there is buying and selling of…

Q: .3. In which of the following markets would ordinary stock most likely be traded? A. Loans market B.…

A: Markets - There are multiple markets which can be dividend into following parts - a. Capital Market…

Q: 5. Which of the following is not a technical trading rule category? a. Contrary-opinion rules b.…

A: Technical trading rule - Technical trading rule in simple terms can be described as the examination…

Q: stock markets protect a firms shares from liquidity? true or false

A: Stock markets are said to be amongst the foremost vital components of a free-market economy where…

Q: Explain which has a stronger effect on stock prices, the change in the interest rate or the…

A: Stock is one of the major securities issued by the companies and an important financial indicator…

Q: ket transactions are made in marketable s

A: Introduction : The acceptance by the Borrowers or a Subsidiaries of funds from an exchange of…

Q: Which of the following about Treasuy inflation protected securities is NOT true:

A: A treasury inflation protected security is one which protects the investor from rising inflation.…

Q: Explain how financial rumors affect the efficiency of stock markets through two clear examples, at…

A: Rumours are one of the oldest mass mediums in the world. They are pieces of information that often…

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: If most participants in the stock market do not follow what is happening to monetary aggregates,…

A: Stock market is the place where various financial securities such as common stocks, preference…

Q: How does market cap effect the stock market?

A: Market capitalization is given by the formula: Market capitalization = Price per share x No. of…

Q: What are the implications of the efficient market hypothesis for investors who buy and sell stocks…

A: The efficient market hypothesis or efficient market hypothesis is also known as the random walk…

Q: How does pe effect the stock market

A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…

Q: Common stocks that are traded on the NYSE are liquid in the sense that they canbe sold and converted…

A: Marketable securities are securities that are highly liquid securities which can be converted into…

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: or financial traders to predict the direction of stock market price movement?

A: In the market direction and trends are important in the stock because stock market is not ideal…

Q: In your opinion, should a public listed company pay attention to the market price of its common…

A: Market prices are decided by the demand and supply(D/S) of the security and investors perception…

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

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.

Q: What does this implyabout detecting bubbles in the stock market?

A: Bubbles in stock market means when the prices of all the stocks exceed its fundamental value by a…

Q: Why is stock exchange referred to as a secondary market? What functions does it perform?

A: Primary Market: In primary market shares are directly offered to public for subscription . it is…