a.
To discuss: Whether the given statement is classified under true of false.
a.
Answer to Problem 1QP
The given statement is classified as“False”.
Explanation of Solution
The reasons supporting the statement to be false is as follows:
Generally, the bid price is consistently lower comparative with the ask price, which results in the bid-ask spread.
Therefore, the given statement is classified as “False”.
b.
To discuss: Whether the given statement is classified under true of false.
b.
Answer to Problem 1QP
The given statement is classified as “False”.
Explanation of Solution
The reasons supporting the statement to be false is as follows:
The investor who want to sell quickly at the best accessible price would enter a market order.
Therefore, the given statement is classified as “False”.
c.
To discuss: Whether the given statement is classified under true of false.
c.
Answer to Problem 1QP
The given statement is classified as “False”.
Explanation of Solution
The reasons supporting the statement to be false is as follows:
Sales by and between investors happen in the secondary market. Primary offerings are said to arise in the primary market and are sold by the company which issues it.
Therefore, the given statement is classified as “False”.
d.
To discuss: Whether the given statement is classified under true of false.
d.
Answer to Problem 1QP
The given statement is classified as “False”.
Explanation of Solution
The reasons supporting the statement to be false is as follows:
ECNs are computer related systems that organizes and links different merchants with one another.
Therefore, the given statement is classified as “False”.
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Chapter 7 Solutions
EBK FUNDAMENTALS OF CORPORATE FINANCE
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- 53. A fixed cash flow in each year for a specified number of years is called as……. a.Annuity b.Compounding c.Reovery Factor d.Discountingarrow_forwardWhat is the full form of "NYSE"? a.Net uield Security Exchnage b.National Stock Exchange c.Net Asset Value d.New York Stock Exchnagearrow_forwardThe method of converting the amount of future cash into an amount of cash and cash equivalents value in present is known as: a.Annuity b.Compounding c.None of these d.Discountingarrow_forward
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