why do the tax-exempt securities can be risky in an investment?
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- What are the investment characteristics peculiar to real estate that make it riskier than investing in government securities?What are some of the exempt securities in investor protection and why do we need these securities put in place?What accounting treatments are appropriate for investments in equity securities without readily determinable fair values?
- Why is it important that in an underwriting the investment banker does not overvalue (overprice) or undervalue (underprice) the securities? If the securities are overpriced or underpriced, who suffers the loss?Why are held-to-maturity securities treated differently from other investment securities?Why is it important that in an underwriting the investment banker does not overvalue (overprice) or undervalued (underprice) the securities? If the securities are overpriced or underpriced, who suffers the loss? Discuss with illustrations.
- Why securitisation may be very beneficial for both institutions and investors ?Investments in equity securities for which the investor has insignificant influence over the investee are classified for reporting purposes under the fair value method. What is fair value?Why are the bonds treated as a conservative investment? Do you think the treasury bills are risk-free assets?
