Give an overview of the main types of orders you can have within a financial market in terms of executing a transaction. Make sure to explain the characteristics in each case and what are the similarities and the differences. Further, explain the difference between quoted and effective spreads. Comment on when the two will be equal and provide an example.
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Give an overview of the main types of orders you can have within a financial market in terms of executing a transaction. Make sure to explain the characteristics in each case and what are the similarities and the differences. Further, explain the difference between quoted and effective spreads. Comment on when the two will be equal and provide an example.
Step by step
Solved in 3 steps
