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3 years ago

Newly issued securities are sold to investors in which markets?

Business

2 answers:

Bezzdna [24]3 years ago

6 0

Answer:

Primary Market

Explanation:

A Share Is a unit of ownership

This is the market for first issue, the market for second issue, that is, reissuing shares that have been previously issued.

Primary markets are facilitated or controlled by underwriting groups consisting of investment banks that set a beginning price range for a given security and complete its sale to investors.

Amanda [17]3 years ago

3 0

Answer:

Newly issue securities are sold to investors in the primary market

Explanation:

The new issue of securities are handled by investment bankers in the primary securities markets.Most times companies issue their debut securities in form of initial public offer(IPO).

The IPO serves as a vehicle through which they can reach out to potential investors for the time.

Such issues are normally sold to the issuing houses,investment and merchant banks alike, for a price lower than the issue price in order that the issuing house could record a percentage gain on the sale of the securities and also to guarantee the sale of the entire securities offered.

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iSooky has a spotter truck with a book value of $40,000 and a remaining useful life of five years. At the end of the five years

IrinaK [193]

Answer: $36,000 increase.

Explanation:

Cost of keeping Current Truck.

The cost of keeping the current truck will be the Opportunity Cost of not purchasing the New truck.

The New truck is capable of reducing Manufacturing costs by $25,000 a year for 5 years so,

Cost of Keeping Current Truck = 25,000 * 5

= $125,000

Cost of buying new truck

It is given that if the company trades in the old truck they get a $31,000 reduction.

The Cost Price of the new truck is therefore,

= 120,000 - 31,000

= $89,000

The difference between the costs will be,

= 125,000 - 89,000

= $36,000

If buying a new truck will reduce expenses by $36,000 then that means it will increase income by $36,000.

8 0

3 years ago

What is the discount yield, bond equivalent yield, and effective annual return on a $3 million commercial paper issue that curre

aleksklad [387]

Answer:

(a) 6.206%

(b) 6.54%

Explanation:

Given that,

Commercial paper value = $3 million

Currently selling at 97.50 percent of its face value.

Days from maturity = 145

(a) Discount yield:

= $\frac{(Face\ value - Current\ price)}{Face\ value}\times\frac{360}{Days\ in\ maturity}$

= $\frac{(100 - 97.50)}{100}\times\frac{360}{145}$

= 0.025 × 2.4827

= 0.06206 or 6.206%

(b) Bond equivalent yield:

= $\frac{(Face\ value - Current\ price)}{Current\ price}\times\frac{365}{Days\ in\ maturity}$

= $\frac{(100 - 97.50)}{97.50}\times\frac{365}{145}$

= 0.026 × 2.52

= 0.0654 or 6.54%

Future value = Present value × $(1+r)^{n}$

$100 = $97.50 × $(1+r)^{\frac{145}{365}}$

$(\frac{100}{97.50})^{\frac{365}{145}} = 1+r$

1.0658 = 1 + r

0.0658 or 6.58% = r

6 0

3 years ago

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described b

ahrayia [7]

Answer:

Explanation:

If workers are free to move between sectors, the wages in each sector will be equal. If wages are not equal, the workers will be motivated to move to sectors with higher wages and this will make a higher salary reduction, and lower wages will increase until they equal.

b. Since there are 100 workers in total,we have:

Ls =100- Lm = 100 -4w
Lm = 4w

Now set this equal to the labor demand for manufacturing equation and solve for w:

4w = 200 - 6w
w = $20.

Substitute w =20 into the two labor demand equations, we have LM = 80 and LS i= 20

c. If the wage in manufacturing is equal to $25 then

Lm=200-6(25) = 50

d. There are now Ls = 50 workers employed in the service sector and the wage:

Ls=100-4Ws

<=> 50 = 100 -4Ws

<=> Ws = 12.5

e. Wages in the manufacturing sector will remain at 25 dollars and jobs will remain at 50. If wages are reserved for the service sector is 15 dollars, then jobs in the service sector will be 40. Therefore 10 unemployed and the unemployment rate is 10%.

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3 years ago

Which long-term goal can a 401(k) account help you achieve? (Select the best answer.)

igor_vitrenko [27]

Answer:buy a house

Explanation:I already did the question

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3 years ago

What do you understand by financial intermediaries?

GrogVix [38]

Answer:

A financial intermediary is an entity that acts as the middleman between two parties in a financial transaction, such as a commercial bank, investment bank, mutual fund, or pension fund.

<h3>PLEASE MARK ME BRAINLIEST.</h3>

7 0

3 years ago