Q: What is the major difference in the accounting for a portfolio of trading securities and a portfolio…
A:
Q: Explain what is the risk component of financial assets.
A: Risk can be described as the likelihood of an unexpected or negative outcome. Any act or activity…
Q: Discuss the main factors that influence the prices of securities on a stock exchane.
A: There are many factors that influence the prices of securities.
Q: What is the Vision and Mission of Muscat Securities Market?
A: The Muscat Securities Market (MSM) was established as a public institution by Royal decree to…
Q: relationship between financial reports and capital markets
A: Financial reports are information published by entities regarding their financial position for…
Q: The role that a trader plays and the importance of the function to the financial markets
A: Financial markets can be defined as the market where financial assets or instruments are traded.…
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 the differences among common stocks preferred stocks and debt securities
A: A business needs finance to run its business and this can be raised by various means such as Common…
Q: Define the term ‘Capital Market’ and explain different forms of efficiencies by referring to the…
A: A market in which all relevant information of securities are reflected by its prices are called…
Q: Define Trading securities.
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: Describe the accounting for investments in equity securities.
A: Equity securities: The financial instruments that claim ownership in the stock of Investee Company,…
Q: Explain accounting for investments in equity securities.
A: An equity security is an investment in stock issued by another company. The accounting for an…
Q: what are the classification of financial market ? Explain its different components?
A: A financial market is an essential part of the financial system. It is defined as a marketplace for…
Q: is a method of evaluating securities by iden
A: Explanation : Technical analysis can be understood as the way of appraising commodities that…
Q: What's the connection between financial statements and stock markets?
A: Introduction: Financial reporting and stock markets Financial reports are documents that provide…
Q: What is the capital market? What are the primary securities traded in it?
A: A stock market is a financial place where multiple buyers and multiple sellers come together to…
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: According to the place of trading, how many kinds of financial markets. Define them?
A: Financial market refers to the place where trading of various financial securities takes place.…
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: In which of the following markets "new issues" of long term securities are bought and sold?
A: In foreign exchange market, currencies are bought and sold. In secondary market, buying and selling…
Q: Why are unrealized gains and losses on trading securities reported in the incomestatement?
A: Unrealized gains and losses: Trading securities are reported at their fair values. Unrealized gains…
Q: Define Issuance of Equity Securities.
A: Investments: Companies invest in stocks and bonds of other companies or governmental entity to…
Q: A) What is the difference between trading securities and available for sale securities? B) Describe…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: What are different types or kinds of financial markets?
A: Financial markets are a marketplace where financial assets such as shares, debentures, bonds,…
Q: Compare and contrast the stock market from bond market. Stock Market Bond Market
A: Stock market Bond Market 1) Here, equity shares are traded. Here, debt securities are traded.…
Q: Why are bond ratings important to firms and investors?
A: Bonds ratings are important for investors. Bond rating is the rating of the issuing company about…
Q: summarize the key features of the markets with the guide questions below. Features Equity Market…
A: The stock market is a location where traders may purchase and sell equities, investors can invest in…
Q: What are financial securities?
A: Financial security can be defined as-“An instrument issued by companies, financial institutions and…
Q: What are the differences between stock and bonds?
A: Stock is the share of ownership in the company. Bond is a debt instrument where the investor…
Q: how do you engage in a financial markets?
A: The market where both buyer and seller interact in order to buying and selling of financial…
Q: Identify which refers to the relationship of interest and time of maturity of securities.
A: interest refers to the return that an investor gets for investing his money in the security or…
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: Summarize instruments traded in financial markets
A: Financial Market is a place where financial securities are traded. In other words, financial market…
Q: Does governance of firms affect the prices of their bonds?
A: Solution- Investors may accept lower return on bonds issued by firms that are subject to governance…
Q: What is the difference between trading securities and available for sale securities, and how are…
A: The financial instruments that are tradable and can be used to raise capital in private and public…
Q: What is an asset allocation in investing equity securities?
A: Asset allocation means the investment portfolio is splitted based on the asset categories like…
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- Banks use gap analysis to measure interest rate risk in their balance sheets. If firm XYZ is said to have a positive gap, this means: Group of answer choices C. Rate-sensitive assets exceed rate-sensitive liabilities B. Long-term assets are funded with short-term liabilities D. Rate-sensitive assets equal rate-sensitive liabilities A. Liabilities reprice before assetsActive secondary markets do not: A. provide investors with liquidity. B. raise funds for the issuers of securities C. perform price discovery. D. perform maturity transformation. E. assist to operation of primary market.Which liquidity risk measurement strategy is best for a financial institution to take when is unable to satisfy its current liabilities? a.All of the above. b.Liquidity Index. c.Peer group ratio comparisons. d.Financing gap and financing requirement.
- Which of the following is false regarding the secondary market? a) Secondary markets provide the necessary liquidity to the market b) transactions in the secondary market affect the total component of financial assets that exist in the economy c) The secondary market represents trading in already existing financial claims d) secondary markets reduce the risk of investing in financial claimsAn increase in the riskiness of financial securities results in a_______ in the supply of loanable funds and hence shift in the supply curve to the_______ O Decrease, leftO Decrease, rightO Increase, left O Increase, rightWhich statement is incorrect related to financial intermediaries (institutions)? * They are firms that specialize in financial intermediation - a process of borrowing funds from SSUs and lending such funds to the DSUs. The main objective of financial intermediaries is to convert savings from SSUs into investments. They are the biggest investors in equity securities in the PSE They offer the highest returns and lowest risks when compared to alternative investments available to SSUs. none of the above
- 1. Which of the following models for mathematics of the financial markets is dependent on expectations or probabilities of changes in the value of an underlying asset? A. Monte Carlo Simulation B. Black Scholes Model C. Cox-Ross-Rubinstein Model 2. Models for the financial markets are primarily used for all of the following, except, A. Algorithmic Trading B. Technical Analysis (Short term trading) C. Fundamental Analysis (Long term investing D. All of the above 3. Which among the following organizations use financial mathematics as part of their core operation? A. Investment banks B. Government C. Hedge funds D. All of the above 4. S1: Quantitative finance helps to allocate resources to provide the optimum returns. S2: Financial models are accurate. A. Both statements are true B. Both statements are false C.…A fundamental analyst uses the discounted cashflow method to value firms, and has a short-term perspective on purchasing stocks and bonds. True or false?Which of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of these
- Which of the following is NOT a purpose of valuing financial securities? a. Valuation is used to provide sensible financial decisions.b. Valuation is used to get the intrinsic value of a financial security.c. Valuation is helpful for investors in order to determine whether to buy or sell their securitiesd. Valuation is used to predict the exact prices of financial securities.Which of the following statement is correct concerning the Pecking order theory? Group of answer choices Equity financing is preferred over internal cash. Debt financing is preferred over equity financing. Debt financing and equity financing is equally preferred. Debt financing is preferred over internal cash.Which of the following statements is false? A. Internal controls are the processes by which the firm ensures that it presents accurate financial statements. B. Greenfield investments provide uncertain cash flows with high yields and high growth potential. C. Footnotes allow investors or any users to improve their assessments of the amount, timing, and uncertainty of the estimates reported in financial statements. D. Secondary markets are the markets in which existing, already outstanding securities are traded among investors.
