What is oversubscribed (IPO)?

Q: How do convertibles reduce agency costs?

A: Agency costs: An agency cost is a kind of inside business cost which originates from the movements…

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: What are the difference between intrapreneurship and entrepreneurship

A: Entrepreneurship means the willingness of an individual to start a business and undertake the risk.…

Q: What is an IPO?

A: Initial public offering refers to the offering which is done first time by any private corporation…

Q: how signaling content affects dividend policy definition

A: According to signalling theory any positive signal indicates positive indicators and will increase…

Q: What is Ending capital

A: Formula: Ending Capital = Beginning capital + Net income - Drawings

Q: Why woulda company hedge?

A: Hedging is the method of trading in an asset to offset the risk arising due to the volatility of…

Q: What are some reasons why a company might use classified stock?

A: Answer: The reason for using classified stock by company is as follows, The publicly traded…

Q: how signaling content affects dividend policy

A: Dividend policy is a policy a corporation uses to organize its dividend pay-out to its shareholders…

Q: Why might purchasing power parity fail to hold?

A: It refers to the relationship which indicates the same cost and same kinds of products in the market…

Q: Explain how a company can use forward contracts to eliminateFX risk

A: Introduction: A forward contract is a contact between two parties regarding the future selling price…

Q: What is an initial public offering (IPO)?

A: Initial public offer is the first step of listing the common stocks of a company in the stock…

Q: What is a sole trader .

A: What is a sole trader?

Q: What is arbitrage?

A: Arbitrage It is the buying and offering of an asset to benefit from a distinction within the cost…

Q: What are BreadTalk Group’s main revenue generators?

A: BreadTalk Group is a snack and beverage company based in Singapore. It was founded in the year 2000.…

Q: Which are the disadvantage of a C corp?

A: C corporation is the corporation that is taxed separately from its owners or shareholders.  In other…

Q: What is an arbitrage opportunity

A: Arbitraging involves simultaneously buying and selling of an asset in spot or future to earn a…

Q: Is an initial public offering an example of a primary or a secondary market transaction?Explain.

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: In your opinion, what is the most compelling justification for a forward stock split?

A: This question explains about the most compelling justification for a forward stock split

Q: what is IPO underpricing? How do asymmetric information model explain this phenomena?Briefly explain

A: When an IPO( initial public offering )  is set at a price lower than its real market value. So, when…

Q: Define takeover

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

Q: Why is it often difficult for the averageinvestor to take advantage of underpricing?

A: Under Pricing of the stock refers to the situation when the current market price of the company’s…

Q: How do the FCFE, APV, and corporate valuation approaches differ from one another? How are they…

A: FCFE, APV and corporate valuation all are techniques of valuation on the basis of equity. This…

Q: What is the financial advantage (disadvantage) of accepting the outside supplier's offer?

A: Make or buy decision: It is the decision made by the company to manufacture the product or buy it…

Q: do you understand by the term "Liquidity Management". Why is important ?

A: in organisation company have large amount money held in different forms assets but it takes time to…

Q: What is purchasing power parity? Why might purchasing power parity fail to hold?

A: To measure the prices of goods in different countries purchasing parity is used. As per the…

Q: According to the signaling theory, issuing common stock is negatively perceived. Is this true or…

A: Signaling theory focuses on how issue of debt and equity are perceived by the investors and how…

Q: Why does IPO underpricing exist?

A: IPO - IPO stands for Initial Public Offer. When company want to list their shares on the stock…

Q: What is initial public offering (IPO)?

A: Primary market is the market where the securities will be sold initially. Public buy the securities…

Q: In your opinion, what is the most important reason for a forward stock split?

A: This question explains about the most important reason for a forward stock split

Q: What is monopoly?

A: In market, there are various types of market structures, monopoly is one of them.  Monopoly market…

Q: What are the main costs associated with an initial public offering (IPO)?

A: Initial Public Offering Initial public offering refers to the process by which a company sells its…

Q: Purchasing Power Parity (PPP) theory fails to explain the facts. explain whether true or false

A: Buying power parity is a method of comparing the absolute purchasing power of currencies and, to…

Q: What is restricted stock?

A: Definition: Common stock: Common stock is the instrument used by the company for raising funds from…

Q: What are the direct and indirect costs of an IPO?

A: An initial public offering or IPO is the method of issuing the shares of the company to public for…

Q: What is information content hypothesis (dividends)?

A: Managers of the company generally prefer not to reduce the dividends paid to the shareholders with a…

Q: Why Are Secondary Markets Important?

A: Secondary market: Secondary market is defined as a place where purchase and sale of securities is…

Q: Is share repurchase always a positive move? explain

A: Repurchase of shares-Under this transaction, a company buys back its own shares directly from the…

Q: How avoid Enron scandal? Explain.

A: The Enron scandal was an accounting scandal involving Enron Corporation. It is one of the biggest…

Q: What is an unbalanced bid? Why might one be used?

A: Bidding involves an offering by an individual or business for setting the price of a product a…

Q: Types of seller financing?

A: Seller Financing: A real estate or property agreement under which the mortgage process is managed by…

Q: What is a “floater”/“inverse-floater” tranche in a CMO offering?

A: CMO( Collateralized mortgage obligation): The financial instrument which is collateralized by the…

Q: What is bribery?

A: Auditing: In auditing, auditors verify the correctness and fair presentation of financial statements…