Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder. To explain: Reasons the corporations invest in securities.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 16, Problem 1Q

To determine

Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.

To explain: Reasons the corporations invest in securities.

Expert Solution & Answer

Answer to Problem 1Q

Reasons the corporations invest in securities:

To earn extra income from excess funds.
To gain market share of a business.
Since, securities have a ready market and can be considered as liquid assets.
To get a regular income.

Explanation of Solution

Corporations invest in securities to utilize the available funds and earn returns.
Investment in securities provides an extra income to the corporate and an asset of the firm.
Firm can sell the securities in the secondary market at any point of time.

Conclusion

Therefore, there are many reasons that the corporations invest in securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Marshall Industries has credit sales of $225,000 yearly with credit terms of net 40 days, which is also the average collection period. Marshall does not offer a discount for early payment, so its customers take the full 40 days to pay. 1. What is the average receivables balance? 2. What is the receivables turnover? 3. If Marshall offered a 2 percent discount for payment in 12 days and every customer took advantage of the new terms, what would the new average receivables balance be?

Please provide the solution to this general accounting question using proper accounting principles.

Provide best Answer

Answer 2

Question

Chapter 16, Problem 1Q

To determine

Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.

To explain: Reasons the corporations invest in securities.

Expert Solution & Answer

Answer to Problem 1Q

Reasons the corporations invest in securities:

To earn extra income from excess funds.
To gain market share of a business.
Since, securities have a ready market and can be considered as liquid assets.
To get a regular income.

Explanation of Solution

Corporations invest in securities to utilize the available funds and earn returns.
Investment in securities provides an extra income to the corporate and an asset of the firm.
Firm can sell the securities in the secondary market at any point of time.

Conclusion

Therefore, there are many reasons that the corporations invest in securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 16, Problem 1Q

To determine

Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.

To explain: Reasons the corporations invest in securities.

Expert Solution & Answer

Answer to Problem 1Q

Reasons the corporations invest in securities:

To earn extra income from excess funds.
To gain market share of a business.
Since, securities have a ready market and can be considered as liquid assets.
To get a regular income.

Explanation of Solution

Corporations invest in securities to utilize the available funds and earn returns.
Investment in securities provides an extra income to the corporate and an asset of the firm.
Firm can sell the securities in the secondary market at any point of time.

Conclusion

Therefore, there are many reasons that the corporations invest in securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 16, Problem 1Q

To determine

Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.

To explain: Reasons the corporations invest in securities.

Expert Solution & Answer

Answer to Problem 1Q

Reasons the corporations invest in securities:

To earn extra income from excess funds.
To gain market share of a business.
Since, securities have a ready market and can be considered as liquid assets.
To get a regular income.

Explanation of Solution

Corporations invest in securities to utilize the available funds and earn returns.
Investment in securities provides an extra income to the corporate and an asset of the firm.
Firm can sell the securities in the secondary market at any point of time.

Conclusion

Therefore, there are many reasons that the corporations invest in securities.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 16, Problem 1Q

To determine

Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.

To explain: Reasons the corporations invest in securities.

Expert Solution & Answer

Answer to Problem 1Q

Reasons the corporations invest in securities:

To earn extra income from excess funds.
To gain market share of a business.
Since, securities have a ready market and can be considered as liquid assets.
To get a regular income.

Explanation of Solution

Corporations invest in securities to utilize the available funds and earn returns.
Investment in securities provides an extra income to the corporate and an asset of the firm.
Firm can sell the securities in the secondary market at any point of time.

Conclusion

Therefore, there are many reasons that the corporations invest in securities.

Answer 6

Chapter 16, Problem 1Q

To determine

Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.

To explain: Reasons the corporations invest in securities.

Expert Solution & Answer

Answer to Problem 1Q

Reasons the corporations invest in securities:

To earn extra income from excess funds.
To gain market share of a business.
Since, securities have a ready market and can be considered as liquid assets.
To get a regular income.

Explanation of Solution

Corporations invest in securities to utilize the available funds and earn returns.
Investment in securities provides an extra income to the corporate and an asset of the firm.
Firm can sell the securities in the secondary market at any point of time.

Conclusion

Therefore, there are many reasons that the corporations invest in securities.

Answer 7

Chapter 16, Problem 1Q

To determine

Securities: Securities refers to the stocks or bonds traded in the secondary market. Price of securities changes with the change in demand and supply of securities. It is an asset of the holder.

To explain: Reasons the corporations invest in securities.

Answer 8

Expert Solution & Answer

Answer to Problem 1Q

Reasons the corporations invest in securities:

To earn extra income from excess funds.
To gain market share of a business.
Since, securities have a ready market and can be considered as liquid assets.
To get a regular income.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Corporations invest in securities to utilize the available funds and earn returns.
Investment in securities provides an extra income to the corporate and an asset of the firm.
Firm can sell the securities in the secondary market at any point of time.