what is meant by “The money market is necessary but not sufficient for the liquidity of securities on the stock market”

Q: Which of the following statements is false? The cost of debt securities is highest due to their…

A: The situation under which any entity can encounter loss, injury or damage is known as a risk. Risks…

Q: Which of the following statements is true? O The secondary market is important because its existence…

A: SECONDARY MARKET : market where the stock trades.

Q: The Money Markets is different from the Capital Markets. What are the financial instruments traded…

A: Money Market : Money market is the financial market where the instruments that have a short term…

Q: Which of the following is NOT a purpose of valuing financial securities? a. Valuation is used to…

A: The term securities range from stocks and bonds to derivative contracts of various types such as…

Q: Does fundamental or technical analysis provide better knowledge for investing in securities?

A: Fundamental analysis is the method of measuring the intrinsic value of a stock by using the…

Q: capital market?

A: Introduction: Financial market is a market where buyers & sellers engage in the activity of…

Q: Why might the stock price changing make sense within the context of risk and return?

A: Stock price movement is dependent on various factors which would eventually impact the required rate…

Q: According to our authors, when is the purchase of stock in one company by another classified as a…

A: Trading security- Classification of securities- There are three different classification: a) held…

Q: Does the FASB considers options as securities or as cash?

A: FASB is the Financial  accounting  standard  board

Q: what is the stock market, and why is it important?

A: Stock Market: Stock markets are platforms where the sellers & buyers meet for the exchange of…

Q: Who is responsible for monitoring stock in the stock market? Who issues a stop loss on stocks?…

A: The regulating agencies of stock market are responsible for stock markets monitoring. Different…

Q: Would a typical common stock provide cash flows more like an annuity or more likean uneven cash flow…

A: Common stock is an instrument that is the property of a company. Common stock investors elect the…

Q: What is the money market (include in your answer the characteristics of the money market and the…

A: Financial Market is a place/mechanism which facilitates exchange of financial assets between holders…

Q: How do money markets and capital markets differ? Identify the types of securities traded in money…

A: The Money market is a feature of the economy that offers short term investment option. A…

Q: A stock market analyst is

A: Answer : Weak form efficiency

Q: What are the advantages and disadvantages of investing in the stock market vs the bond market?

A: Investing in the stock market is purchasing corporate shares and gaining control of the firm.…

Q: stock markets protect a firms shares from liquidity? true or false

A: Stock markets are said to be amongst the foremost vital components of a free-market economy where…

Q: Is stocks or bonds important to the company or just the investor?

A: The company issues ownership rights in the form of shares to the investors to raise the money from…

Q: Why are unrealized gains and losses on trading securities reported in the incomestatement?

A: Unrealized gains and losses: Trading securities are reported at their fair values. Unrealized gains…

Q: Which of the following is the not the function of the financial markets?

A: Option Explanation 1 Financial market helps in creating habits of small savings 2 It helps in…

Q: What is the primary motivation of investors in performing security analysis? A-identify the best…

A: Analysis of tradable financial market securities is called as security analysis. Here the proper…

Q: Would a typical common stock provide cash flows like an annuity or more like an uneven cash flow…

A: Common Stock is a security that represents ownership in a firm. Common stock holder can earn returns…

Q: Which of the following about Treasuy inflation protected securities is NOT true:

A: A treasury inflation protected security is one which protects the investor from rising inflation.…

Q: Why are stock markets the most watched and reported of the financial security markets?

A: Financial markets- It refers to a marketplace that provides an avenue for the sale and purchase of…

Q: Explain how financial rumors affect the efficiency of stock markets through two clear examples, at…

A: Rumours are one of the oldest mass mediums in the world. They are pieces of information that often…

Q: • Contrast the activities of securities firms from other financial institutions. How do these…

A: A financial institution (FI) is a business that specializes in financial and monetary transactions…

Q: Is preferred stock comparable to long-term debt in any way? Is it comparable to equity in any way?

A: Preferred stocks are the form of shares being issued by a company for increasing its capital. The…

Q: If most participants in the stock market do not follow what is happening to monetary aggregates,…

A: Stock market is the place where various financial securities such as common stocks, preference…

Q: Is Preferred stock a hybrid between common stock and debt? Explain how?

A: Answer: Preferred stock is identified with a preferred name. Preference stock is often granted…

Q: How does pe effect the stock market

A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…

Q: Is treasury stock an asset? explain.

A: Treasury Stock: It refers to the shares that are reacquired by the corporation that are already…

Q: Common stocks that are traded on the NYSE are liquid in the sense that they canbe sold and converted…

A: Marketable securities are securities that are highly liquid securities which can be converted into…

Q: Buying common stock is riskier than buying a U.S Treasury bill. state reason in 'other'   true False

A: Common stock refers to the stock issued by public companies to the public for the purpose of raising…

Q: In your opinion, should a public listed company pay attention to the market price of its common…

A: Market prices are decided by the demand and supply(D/S) of the security and investors perception…

Q: What happens to the buyer's assets and equity when they buy treasury stock?

A: This question tells about The purchase of Treasury shares has an impact on the assets and equity of…

Q: What does this implyabout detecting bubbles in the stock market?

A: Bubbles in stock market means when the prices of all the stocks exceed its fundamental value by a…

Q: Why is stock exchange referred to as a secondary market? What functions does it perform?

A: Primary Market: In primary market shares are directly offered to public for subscription . it is…