For what reason do different entities have securities created and sold? O Government debt is reduced due to the capital that is received from investors when their securities are purchased. O When common shares are initially sold, the capital raised will increase the issuing corporation's retained earnings. Governments can address financial needs and support initiatives when securities are first sold. The issuance of securities is a method used by corporations to redistribute their wealth to investors to lower taxes. Khuyen is a Dealing Representative for Stark Contrast Investments. Her dealer has relationships with 20 different mutual fund families. This gave her the flexibility to sell two different types of funds from two different fund families to her client, Bao. $5,000 was invested in the Blue Moon Global Balanced fund and an additional $5,000 was invested in the Orange Sun Asset Allocation fund. Khuyen has been reviewing the performance of both funds and has determined that Bao would be better off being fully invested in the Blue Moon Global Balance fund. Bao had previously signed a Limited Authorization Form (LAF) for Khuyen, so she goes ahead and does not worry about consulting with Bao before making the change. What type of activity has Khuyen performed? O Top-down management O Churning Discretionary trading Flag for Re Value investing
For what reason do different entities have securities created and sold? O Government debt is reduced due to the capital that is received from investors when their securities are purchased. O When common shares are initially sold, the capital raised will increase the issuing corporation's retained earnings. Governments can address financial needs and support initiatives when securities are first sold. The issuance of securities is a method used by corporations to redistribute their wealth to investors to lower taxes. Khuyen is a Dealing Representative for Stark Contrast Investments. Her dealer has relationships with 20 different mutual fund families. This gave her the flexibility to sell two different types of funds from two different fund families to her client, Bao. $5,000 was invested in the Blue Moon Global Balanced fund and an additional $5,000 was invested in the Orange Sun Asset Allocation fund. Khuyen has been reviewing the performance of both funds and has determined that Bao would be better off being fully invested in the Blue Moon Global Balance fund. Bao had previously signed a Limited Authorization Form (LAF) for Khuyen, so she goes ahead and does not worry about consulting with Bao before making the change. What type of activity has Khuyen performed? O Top-down management O Churning Discretionary trading Flag for Re Value investing
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:For what reason do different entities have securities created and sold?
O Government debt is reduced due to the capital that is received from investors when their securities are purchased.
O When common shares are initially sold, the capital raised will increase the issuing corporation's retained earnings.
Governments can address financial needs and support initiatives when securities are first sold.
The issuance of securities is a method used by corporations to redistribute their wealth to investors to lower taxes.
Transcribed Image Text:Khuyen is a Dealing Representative for Stark Contrast Investments. Her dealer has relationships with 20 different mutual fund families.
This gave her the flexibility to sell two different types of funds from two different fund families to her client, Bao. $5,000 was invested in
the Blue Moon Global Balanced fund and an additional $5,000 was invested in the Orange Sun Asset Allocation fund. Khuyen has been
reviewing the performance of both funds and has determined that Bao would be better off being fully invested in the Blue Moon Global
Balance fund. Bao had previously signed a Limited Authorization Form (LAF) for Khuyen, so she goes ahead and does not worry about
consulting with Bao before making the change.
What type of activity has Khuyen performed?
O Top-down management
O Churning
Discretionary trading
Flag for Re
Value investing
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