What is meant by a primary market transaction and a secondary market transaction? Give an example

Q: etween: i. A Primary Market and Secondar

A: Primary Market The process through which a market becomes a source of securities is referred to as a…

Q: Define Economic entity assumption.

A: Economic entity assumption is an accounting principle that separates the  transactions carried out…

Q: Distinguish between (6) primary and secondary markets.

A: Differences between primary and secondary markets: Primary markets are those markets where the…

Q: What is market model?

A: A market model is a numerical portrayal of the exchanges among different members, financial powers,…

Q: what is net purchases? Is there another term for it?

A: Net purchases is an important metric in accounting because it is used to calculate the cost of goods…

Q: Explain primary market

A: Primary market is the market under which the securities of the companies are created. In the primary…

Q: Differentiate between each of the following pairs of terms. a. Money market and capital market b.…

A: Differentiation of different markets has been provided :

Q: What is arbitrage?

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

Q: 7. How would you define transaction exposure? How is it different from economic exposure?

A: Exposure refers to the degree to which an individual or entity is subject to a particular risk or…

Q: What is Market Value Added (MVA)?

A: The market value added is the difference of the current value of the company and the equity capital…

Q: What is a contra-asset? Give an example of one.

A:

Q: Differentiate primary markets from secondary markets?

A: Financial Markets refers to the place where financial assets or securities  are being created ,…

Q: Discuss the following models in relation to purchasing power parity.

A: Comparative rates of inflation in different countries are the factors influencing the exchange rate.…

Q: What is market approach measurement?

A: The market approach is just like comparing one set of assets with another both having the same…

Q: What is mark-to-market?

A: Market to market is an equipment that can become different the value on either side of balance…

Q: Differentiate between primary and secondary markets.

A: Primary market is a market where shares and securities are created and sold for the first time.…

Q: What is the transaction's profit

A: This question deals with the transaction's profit?

Q: Define arbitrage

A: Introduction: Usually, an arbitrage opportunity is used when there is the option of purchasing an…

Q: Gain or Loss on Sale of FVPL 13) On January 1, 2020, Erika Company purchased equity investments held…

A: Investment held for trading is the investment held with the intent of selling within a limited…

Q: What is Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: What is the role of Market Practice in Riba?

A: Riba (Islamic banking) It is charging of interest on loan/deposits. It is also a charge of an…

Q: What does it mean to pay to transfer a liability between market participants? What would be an e.g?…

A: Paying to transfer a liability between market participants essentially means that one party is…

Q: What is a variable interest entity (VIE)?

A: Explain the term variable interest entity (VIE). A legal business structure is known as a variable…

Q: The secondary market is best defined as the market.

A: Capital markets is largely made up of primary market (for the initial or first time issue of…

Q: What is off-exchange transaction?

A: The answer is provided in the next step.