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American Depository Receipts:
- It is a certificate representing the shares of foreign stock issued by the U.S. bank. Such certificates are traded on American stock exchanges.
Mutual Funds:
- It is an investment vehicle consisting of a stock portfolio, bonds, or other securities. Mutual funds provide access to diversification and a well-managed portfolio for investors.
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- An investor in the common stock of companies in a foreign country may wish to hedge against the _____ of the investor’s home currency and can do so by _____ the foreign currency in the forward market.a. depreciation; selling.b. appreciation; purchasing.c. appreciation; selling.d. depreciation; purchasing.U.S. firms and households wishing to invest in stocks in a German company are ___ in the foreign exchange market Group of answer choices suppliers of U.S. dollars demanders of U.S. dollars suppliers of Euros suppliers of Euros by the Fed for useAssume that foreign investors who have invested in Malaysian securities decide to increase their holdings of Malaysian securities and to instead decrease their holdings of securities in their own countries. How will this affect Malaysian interest rates? Explain.
- Finance What do we call foreign stocks that are bought and sold in the U.S. that are also priced in U.S. dollars? What are these stocks called? Multiple Choice There is no such thing. Foreign stocks must be purchased using that countries foreign currency. They are called SDRs. They are called American Depository Receipts (ADRs) Thev are called U.S. Foreign Dollar Certificates (USDCs). Detail explainationA foreign-based company must use US GAAP if it wants to have its stock traded on a US stock exchange. Group of answer choices True FalseA U.S. company has the following choices of financial markets in which to raise capital. Which one will it most often prefer? a.foreign bond b.domestic banks c.foreign bank d.a new issue of common stock
- Which statement is NOT true of Asset-backed securities and Mortgage-backed securities in the Philippines? * Asset-backed securities (ABS) are certificates issued by a Special Purpose Trust (SPT) representing undivided ownership interest in the asset pool. ABS are eligible as collaterals for loans extended by a bank which originated/sold the underlying assets of such ABS. ABS and MBS benefit sellers because they can be removed from the balance sheet, allowing sellers to acquire additional funding. Investors in the Philippines are wary on the reliability of MBS specifically those backed by assets of low income households and those originated by publicly controlled finance institutions. Mortgage-backed securities (MBS) are formed by pooling together mortgages.Which of the following is an example of a systematic risk? Bond investor invests in a Japanese investment grade bond and receives coupon payments in Japanese yens A firm hires a former politician with ties to the Republican party when a political climate in the state changes U.S. government announces an increase in corporate tax rate Bond investor receives news about a bond issuer issuing another corporate bondExplain how will the following transactions affect Bangladeshi NCO? Does this transaction affect direct investment or portfolio investment? Explain. Pran Foods Ltd. buys stock in Amul India Private Ltd. Walton buys parts from a Japanese manufacturer to use in the production of its refrigerators. An US firm expands its outlets in Dhaka. A Korean mutual fund buys shares of stock in Beximco.
- Which of the following statements is CORRECT? A. Capital market instruments include both mortgages and U.S. Treasury bonds. B. An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift. C. The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically. D. While the two frequently perform similar functions, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors.The risk of investing in foreign stock markets depends on exchange rate uncertainty more than the risk of investing in foreign bonds. Select one: True FalseWhich of the following statements is CORRECT? a. Hedge funds are legal in Europe and Asia, but they are not permitted to operate in the United States. b. Hedge funds have more in common with commercial banks than with any other type of financial institution. c. Hedge funds have more in common with investment banks than with any other type of financial institution. d. Hedge funds are legal in the United States, but they are not permitted to operate in Europe or Asia. e. The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds, and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.