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garri49 [273]
3 years ago
7

If the financial markets are efficient then: stock prices should remain constant. stock prices should increase or decrease slowl

y as new events are analyzed and the information is absorbed by the markets. an increase in the value of one security should be offset by a decrease in the value of another security. stock prices will only change when an event actually occurs, not at the time the event is anticipated. stock prices should only respond to unexpected news and events.
Business
1 answer:
Bess [88]3 years ago
3 0
<h2>stock prices should respond only to unexpected news and events.</h2>

Explanation:

Let us understand the term "financial market":

Here where the trading places. We talk about shares, debentures, etc.

So when the financial markets are efficient, the market is ready with the information which has been incorporated in to the prices of the product. So  with respect to the market value the stock price will change or respond only during the unexpected news and events.

It will not increase or decrease based on the new events. It will not remain constant too all times.

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Different organizations face different constraints and rules. _____ have more ways to accumulate capital (such as issuing stocks
Pani-rosa [81]

Answer:

Different organizations face different constraints and rules. Not-for-profit organizations have more ways to accumulate capital (such as issuing stocks and bonds) and benefit from economies of scale. But small firms do not have to pay certain kinds of taxes.

Explanation:

Non profit organization such as NGOs have more ways to accumulate capital through international support as a result of the nature of task they are carrying out. International organization that supports NGOs are United Nation, UNICEF, WHO, IMF and world bank among others.

while small firms does not pay certain kind of taxes as a result of the nature of type of business they are into, this limits or reduces their tax payments

6 0
2 years ago
The _____ Act limits the types of assets commercial banks can buy; the amount of capital they must maintain; and the use of deri
Aneli [31]

Answer:

Dodd-Frank Act of 2010

Explanation:

The Dodd-Frank Wall Street Reform and Consumer Protection Act was enacted as stated by its name to change how Wall Street worked (well not only Wall Street, but the financial system) and to specially protect the small investor. It was promoted by Senator Chris Dodd and Representative Barney Frank as a result of the great recession suffered between 2008 and 2010, which was primarily caused by an inefficient and sometimes even corrupt financial system. It is a very long and complex law, but it mainly places strict regulations on lenders, banks and other financial institutions.

6 0
2 years ago
The net decrease in Prepaid Expenses (Prepaid) amounts to $30,000 and the net decrease in Accounts Payable (AP) is $20,000. Assu
tester [92]

Answer:

Net decrease in prepaid expenses of $30,000 will be added to the net income in adjustments to net income because it will be considered that working capital (inventory or any other expense) has been generated by the operations.

Net decrease in Accounts payable of $20,000 will be deducted from net income in adjustments to net income because decrease in accounts payable means that cash has been paid to the outstanding payables.

Net effect of the above transactions is $30,000 - $20,000 = $10,000

So, net income will be increased by $10,000 as net effect of the above adjustments.

7 0
2 years ago
An important assumption that is made when constructing a supply schedule is only price and quantity matter in determining supply
sergey [27]

Answer:

only price and quantity matter in determining supply

all other determinants of supply are held constant

Explanation:

At the time of constructing the supply schedule, only price and quantity should be considered and other factors should remain the same because the factors that impacts the supply other than the price so it shifted the supply curve but when only the price changed so there should be the movement also law of supply represent the direct relationship between tfhe price and the supply

8 0
2 years ago
July 15 Declared a cash dividend payable to common stockholders of $166,000. August 15 Date of record is August 15 for the cash
Anna35 [415]

While the organization declares the dividend it will create a liability for the employer. legal responsibility is already created whilst the dividend is said on 15 July, therefore there may be no want to file the magazine access again on 15 August.

A cash dividend is the distribution of finances or cash paid to stockholders generally as part of the employer's cutting-edge earnings or amassed profits. cash dividends are paid directly in money, instead of being paid as a stock dividend or a different form of price.

Dividend earnings are described by using the IRS as any distribution of an entity's assets to its shareholders. whilst they are generally cash, dividends can also be in the form of stock or some other property. typically dividend earnings are the distribution of an organization's taxable profits to its investors.

To be eligible for dividends, you need to be preserving the inventory in your Demat account on the report date of the dividend issue. You must have offered the stock at least someday before the ex-date so that the stocks are brought for your Demat account with the aid of the report date.

Learn more about cash dividend here: brainly.com/question/25845157

#SPJ4

5 0
2 years ago
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