Answer:
C) the syndicate member assumes liability for unsold shares and the selling group member does not.
Explanation:
In the trading of a security, the dealer's spread refers to the difference between the bid and asked prices of a security, which represents the dealer's markup, or profit from a security transaction.
Simply stated, the bid-ask spread refers to the amount by which the bid price by a dealer is lower than the ask-price for a security or an asset in the market at a specific period of time.
The bid-ask spread exists because of the need for dealers to cover expenses and make a profit. A bid-ask spread is use in the transaction of the following items; options, future contracts, stocks, and currency pairs.
The primary difference between an underwriting syndicate member and a selling group member in a firm commitment underwriting is that the syndicate member assumes liability for unsold shares and the selling group member does not.
Answer:
Customers will less likely agree to pay high price for an experience good
Explanation:
Once a firms reputation is ruined or tarnished, a great number of customers will naturally lose trust as regards products from that firm. Most customer would not want to gamble with their money even with the slight increase in interests rates, it is expected that a firm should always deliver quality product on a consistent basis. Inconsistency in product quality will lead to a reduction in customer trust and overtime, customer base in general.
Answer:
Journal Entry
July 1,
Debit Cash / Bank $200
Credit Dividend Received (Income) $200
Explanation:
All the investments below 50% have non controlling interest in the company in which they invested. Such a investment is recorded as a fixed asset if investment is made for long term. Dividedn received fro here will be considered as the Dividend income which is recorded and shown on the Income statement with other Income.
Answer:
0.10
Explanation:
The total deposits in last bank of commerce are $100,000
The total deposits set asides as reserves are $10,000
Therefore the required reserve ratio can be calculated as follows
= 10,000/100,000
= 0.10
Hence the required reserve ratio is 0.10
Answer:
$20,000
Explanation:
The reason is that the standard specifically addresses the issue and says that the publicly trading security must be recorded at the market price not on the management estimation. If it was allowed we would never see a loss in the financial statement because everyone would argue that our management estimation says that the asset is worth $1 million more than the current market price. So this is prohibited by the accounting standards.