All categories

3 years ago

Which accurately explains the difference between the stock market and the bond market?

Business

2 answers:

Inessa05 [86]3 years ago

6 0

Answer:

They trade on different exchanges.

The bond market goes deeper and has more volume. The bond market is about loan and debt but the stock market mainly focuses or companies.

Reptile [31]3 years ago

5 0

<span>Bond prices have an inverse relationship with interest rates. As bond prices rise, yields will fall. Typically this is bullish for stocks as investors move to the equity marke .Equity is bought and sold in the stock market while debt is bought and sold in the bond market.The Stock Market is a subset of the Capital Market.</span>

You might be interested in

Traditionally, small businesses tended to be concentrated in the ________ industry.

DENIUS [597]

Traditionally, small businesses tended to be concentrated in the retail or retailing industry.

The retail industry involves a business that sells good or services to a consumer. The sell these items based on the demand of the good or service. Even today, the retail industry is growing fast and still one of the main focuses of small businesses.

7 0

3 years ago

How much tax do i pay if i make 100000 in california?

gizmo_the_mogwai [7]

29,208 I used a tax calculator

4 0

3 years ago

Read 2 more answers

The following information is for Redwood Inc. for the year ended December 31, 2016. Redwood had a cash and cash equivalents bala

Alchen [17]

Answer and Explanation:

The preparation of the cash flow statement using the direct method is presented below:

Redwood Inc.

Cash flow statement

For the year ended December 31, 2016

Cash flow from operating activities

Cash Received from Customers $1,940

Interest on investments $220

Less: Interest on debt -$320

Less: Income tax -$84

Less: Purchase of inventory -$1,000

Less: Operating expenses -$520

Net cash provided by operating activities $236

Cash flow from investing activities

Sale of land $120

Less: Purchase of equipment -$4,500

Net cash used by investing activities -$4,380

Cash flow from financing activities

Sale of common stock $640

Issuance of debt securities $2,040

Less: Debt principal reduction -$1,540

Less: Dividends on common stock -$220

Net cash provided by financing activities $920

Decrease in cash -$3,224

Add: Beginning cash balance $5,600

Ending cash balance $2,376

The items which shows in a positive sign indicates the cash inflow and the items which shows in a negative sign indicates the cash outflow and the same is to be considered

5 0

3 years ago

Vicky Robb is considering purchasing the common stock of Hawaii Industries, a rapidly growing boat manufacturer. She finds that

Sergio [31]

Answer:

P0 = $51.9956 rounded off to $52.00

Explanation:

The two stage growth model of DDM will be used to calculate the price of a stock whose dividends are expected to grow over time with two different growth rates. The DDM values a stock based on the present value of the expected future dividends from the stock.

The formula for price of the stock today under this model is,

P0 = D0 * (1+g1) / (1+r) + D0 * (1+g1)^2 / (1+r)^2 + ... + D0 * (1+g1)^n / (1+r)^n + [ (D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n ]

Where,

D0 is the dividend today or most recently paid dividend

g1 is the initial growth rate which is 20%

g2 is the constant growth rate which is 8%

r is the required rate of return

P0 = 2.5 * (1+0.2) / (1+0.15) + 2.5 * (1+0.2)^2 / (1+0.15)^2 +

2.5 * (1+0.2)^3 / (1+0.15)^3 +

[(2.5 * (1+0.2)^3 * (1+0.08) / (0.15 - 0.08) / (1+0.15)^3)

P0 = $51.9956 rounded off to $52.00

3 0

3 years ago

Which of the following data is used to determine credit scores?

mojhsa [17]

Answer:

Payment history, the number and type of credit accounts, your used vs. available credit and the length of your credit history are factors frequently used to calculate credit scores.

Explanation:

5 0

3 years ago

Read 2 more answers