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

Q: Why might a stock dividend or a stock split be of limited value to an investor? Please explain your…

A: Stock dividend is dividend paying to investors in kind. It is adding value to the shares of 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 is the major reason for a forward stock split?

A: Stock Split: Stock Split is a scheme in which a company’s total number of shares outstanding will…

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

A: There are two types of Risk 1. Systematic  Risk:- These are risk pertains to Industry as a whole not…

Q: For investors, the function of secondary markets is to provide marketability for the shares of…

A: Secondary market is a type of market where investors buy and sell securities or assets from other…

Q: How does eps affect the stock market

A: The earning per share of the company will be reflective of the total earnings made for each of the…

Q: own stock that they have previously issued?’

A: company wants to repurchase some of its own stock that they have previously issued because of…

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: Which one of the following action will not lead to reducing financial risk? Issuing bonus shares…

A: Financial Risk: The term "financial risk" refers to the inability of your company to effectively…

Q: (c) Explain why a firm's decision to pay dividends versus repurchase shares is important in perfect…

A: Dividends and share repurchase are two methods to share net income with shareholders.

Q: A. Explain why a firm might consider a stock split for its shares.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Preferred stock is said to be a hybrid of common stock and bonds. Explain fully. Describe the cash…

A: Answer: Preferred stock, or the term preferred shares is often used. These are considered as…

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

A: Money market is an organized market which meets short term requirements of the borrowers and…

Q: According to our authors, when is the purchase of stock in one company by another classified as a…

A: Trading security- Classification of securities- There are three different classification: a) held…

Q: In what situation should a firm split its stock?

A: Firms generally split the stock when the price of the share becomes too high or exceeds the level…

Q: explain the statement"The money market is neccessary but not sufficinet for the liduiidity of…

A: Money market is an instrument used to provide flow of short term funds in the economy. It consist of…

Q: Why is preferred stock referred to as a hybrid security? It is often said to combine the worst…

A: Several times preferred stock is attributed to hybrid security as it has various features of both…

Q: available-to-sell stock versus a held-to-maturity stock

A: Available-to-sell stock is a type of security that can be bought and sold before maturity.…

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: How are shares issued at full market value treated differently from rights issues? Explain why it…

A: Destitute organizations will move to rights problems to fund-raise once they actually would like it.…

Q: What is the difference between a stock split and a stock split effected in the form of a stock…

A: Stock split is an events that increase the outstanding shares and reduce the stated par value. For…

Q: Why do managers engage in treasury stock?

A: Stock:   A kind of investment that are made by the investors, in order to get more returns is…

Q: Why Shares repurchased and not retired are referred to as treasury stock?

A: Treasury stock is also known as treasury shares or reacquired stock. It refers to that previous…

Q: Why might a stock dividend or a stock split be of limited value to an investor?  What about a stock…

A: Stock Dividend:When the corporation paid a dividend to stockholders in the form of stock instead of…

Q: What are the advantages and disadvantages of investing in the stock market vs the bond market?

A: Investing in the stock market is purchasing corporate shares and gaining control of the firm.…

Q: Which of the following holds true about the Stock market? a. It is for Purchase and sale of goods.…

A: A stock market is a market in which stocks of companies are traded among the buyers and sellers.…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: why is money market necessary but not sufficient for the liquidity of securities on the stock market

A: Money market (MM) is a place where short term (ST) securities are traded. Generally, governments or…

Q: What is treasury stock? Why would a company repurchase its own stock? How might they dispose of the…

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the…

Q: Is stocks or bonds important to the company or just the investor?

A: The company issues ownership rights in the form of shares to the investors to raise the money from…

Q: A preferred stock has a fixed dividend and a priority status over other equity securities? Select…

A: As the name suggests, preferred stock owners have higher claims as compared to common stock holders.

Q: What is a stock split? How does a stock split affect the market value of a share of stock? What is a…

A: Company Stock: These are representations of the claim of ownership on the assets and company…

Q: In what major ways do stocks differ from bonds? When would bonds be a better investment choice than…

A: Bonds are units of corporate debts issued by companies and securitized as tradable assets. Shares…

Q: Why would a firm repurchase its stock? Discuss.

A: Repurchasing shares: It is also called buyback of shares. The company purchases its previously owned…

Q: Which of the following is an example of an action done by a firm to conduct financial structuring?…

A: A corporation's financial structure refers to the mix of debt and equity used to support its…

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: Access the glossary (“Master Glossary”) to answer the following. a.    What is a “convertible…

A: Describe the meaning of the following: a. Convertible securities: Convertible security is a…

Q: crease an

A: The shareholders' will be considered as the owners of the company. The bond holders, and debenture…

Q: How are share repurchases an alternative to dividends, and why might investors prefer them

A: The share repurchase is the alternative to dividends because when a company repurchases it’s issued…

Q: What is stock split? Distinguish between a bonus issue and a stock split.

A: Stock Split Means: it refers to that a company divides its existing share into multiple shares or a…

Q: Who are the major purchasers of nonconvertible preferred stock? Why?

A: Mostly, the buyers of preferred stocks are institutional investors because they get an incentive…