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3 years ago

Which one of the following is a primary market transaction?

Business

2 answers:

Natalka [10]3 years ago

5 0

Answer:

The correct answer is letter "B": sale of a new share of stock to an individual investor.

Explanation:

Corporations and governments fund their activities by selling stocks or bonds that are bought directly by individual investors from the issuing company or government entity. This is considered the primary market which gives investors their first opportunity to buy new securities.

Charra [1.4K]3 years ago

3 0

Answer:

b. sale of a new share of stock to an individual investor

Explanation:

The primary market is where new stocks are created. it is the platform for investors to purchase stocks of an entity that goes public for the first time.

Hence the initial public offer otherwise known as IPO is a good example of a primary market transaction.

As such sale of a new share of stock to an individual investor is a primary market transaction

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If a foreign broker-dealer that does not have U.S. based operations wishes to solicit customers in the United States, the broker

Molodets [167]

Answer: I. must establish an SEC-registered U.S. subsidiary.

III. can effect its business through another registered U.S. broker-dealer.

Explanation:

If a foreign broker-dealer that does not have U.S. based operations wishes to solicit customers in the United States, the broker-dealer must establish an SEC-registered U.S. subsidiary and can also effect its business through another registered U.S. broker-dealer.

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3 years ago

On October 14, the Patrick Company sold merchandise with an invoice price of $1,200 ($770 cost), with terms of 2/10, n/30, to th

Anna11 [10]

Answer:

Patrick Company

Journal Entries:

Oct. 14: Debit Accounts receivable (Baxter Company) $1,200

Credit Sales revenue $1,200

To record the sale of goods on account, terms of 2/10, n/30.

Oct. 14: Debit Cost of goods sold $770

Credit Inventory $770

To record the cost of goods sold.

Oct. 18: Debit Sales returns $220

Credit Accounts receivable (Baxter Company) $220

To record the return of goods (wrong size) by Baxter.

Oct. 18: Debit Inventory $170

Credit Cost of goods sold $170

To record the cost of goods returned.

Oct. 24: Debit Cash $960

Debit Cash discounts $20

Credit Accounts receivable (Baxter Company) $980

To record the receipt of check on full settlement, including discounts.

Explanation:

a) Data and Calculations:

Oct. 14: Accounts receivable (Baxter Company) $1,200 Sales revenue $1,200, terms of 2/10, n/30.

Oct. 14: Cost of goods sold $770 Inventory $770

Oct. 18: Sales returns $220 Accounts receivable (Baxter Company) $220

Oct. 18: Inventory $170 Cost of goods sold $170

Oct. 24: Cash $960 Cash discounts $20 Accounts receivable (Baxter Company) $980

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2 years ago

In the weekly computer run to prepare payroll checks, a check was printed for an employee who had been terminated the previous w

Gre4nikov [31]

<h2>A control total for hours worked, prepared from time cards collected by the timekeeping department.</h2>

Explanation:

An employee should get salary only based on the number days / number hours worked for the organization. So the time card will help the organization to solve the problem.

So the time card should be collected and then only the salary needs to be calculated. The salary calculation should take number of leaves (paid / unpaid), permissions and On-duty in to account so that the expected outcome can be achieved.

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3 years ago

In the small town of geneva, there are 5 firms that make watches. the firms’ respective output levels are 30 watches per year, 2

VMariaS [17]

The four-firm concentration ratio is a term used to refer to the market share of the four largest firms. In this given example, the total number of output every year is 100 watches per year. Then, 90 of which are coming from the four largest firm. Thus, the four-firm concentration ratio is equal to 90%.

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3 years ago

The Blooming Flower Co. has earnings of $1.48 per share. a. If the benchmark PE for the company is 15, how much will you pay for

marshall27 [118]

Answer:

$22.20

Explanation:

Using the equation to calculate the price of a share of stock with the PE ratio:

P = Benchmark PE ratio * EPS

So, with a PE ratio of 15

P = 15*($1.48)

P = $22.20

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3 years ago