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3 years ago

What is the difference between the primary market and the secondary market?

Business

1 answer:

NeX [460]3 years ago

4 0

Answer:

The SECONDARY MARKET is the sale of "used" stock in that the current owner sells it to a new owner and the proceeds go to the current owner, not the company, while the PRIMARY MARKET  is the market where the initial sale of common stock is made by a company and the proceeds of the sale go to the company for the newly issued stock.

Explanation:

The primary market is the market where new shares or bonds are sold to investors.Primary market are mainly for setting up new business or for expansion. On the other hand, secondary market is the market where existing securities are traded among investors.

The primary and secondary market are both under the capital market which is the market for buying and selling of long term debts or equity backed securities.

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Exercise 11-1 Compute the Return on Investment (ROI) [LO11-1] Alyeska Services Company, a division of a major oil company, provi

vaieri [72.5K]

Answer:

1. Margin = 0.32 or 32%

2. Turnover = $19,000,000 or Operating Asset Turnover = 0.52 or 52%

3. Return on Investment = 0.17 or 17%

Explanation:

Firstly, list out the parameters we were given:

Sales = $19,000,000, Net Operating Income = $6,100,000,

Average Operating Assets = $36,500,000

1. Operating Margin = Net Operating Income / Sales

Operating Margin = 6,100,000 ÷ 19,000,000 = 0.32

Operating Margin = 0.32 (to 2 decimal places)

Operating Margin = 32%

2. Turnover refers to sales or revenue made during a particular period. In which case turnover is $19,000,000

However, if the turnover referred to is the Operating Asset Turnover, that is calculated below:

Operating Asset Turnover = Sales / Average Operating Assets

Operating Asset Turnover = 19,000,000 ÷ 36,500,000

Operating Asset Turnover = 0.52 (to 2 decimal places)

Operating Asset Turnover = 52%

3. Return on Investment (ROI) = Net Operating Income / Average Operating Assets

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Return on Investment (ROI) = 0.17 (to 2 decimal places)

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3 years ago

A new machine for harvesting corn will allow rows to be planted only fifteen inches apart, instead of the usual thirty inches. C

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Therefore the most appropriate answer to the space given above is option D.

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3 years ago

What is the difference between the primary market and the secondary​ market?

What is the difference between the primary market and the secondary market?