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Vikki [24]
3 years ago
14

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

Business
1 answer:
NeX [460]3 years ago
4 0

Answer:

The <u>SECONDARY MARKET </u>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 <u>PRIMARY MARKET </u> 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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Two roadway designs are under consideration for access to a permanent suspension bridge. Design 1A will cost $1.7 million to bui
Vladimir79 [104]

Answer and Explanation:

A. Given that Design 1A will cost $1.7 million to build and $175,000 per year to maintain

Given that Design 1B will cost $3.6 million to build and $40,000 per year to maintain

Both designs are assumed to be permanent

To find ROR using AW based rate of return equation, we find present value of each design and equate them:

Each design is permanent so

Present value of perpetuity:

Design 1A= 1700000+175000/r

Design 1B = 3600000+40000/r

=1700000+175000/r=3600000+40000/r

135000/r=1900000

Cross multiply

r=135000/1900000

r= 0.0710

r=7.10%

B Given that ROR=7.10% and MARR is 25%

MARR>ROR

Hence we reject both designs

5 0
3 years ago
Why are we forced to make choices in day-to-day life? we are forced to make choices in day-to-day life because of resources.
rewona [7]
We are forced to make choices in our day to day life because our resources are limited.

An example of this limited resources is our financial resources, we need to work to earn money to buy our necessities to live a comfortable life. Simply put, no work no pay. No pay, no food. No food, no life. So, no choice but work.
6 0
3 years ago
Read 2 more answers
Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba
Rufina [12.5K]

Answer:

6.11%

Explanation:

For computing the variance, first we have to determine the expected return which is shown below:

= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy)  + (expected return of the recession × weightage of recession)

= (12% × 5%) + (10% × 85%)  + (2% × 10%)  

= 0.6% + 8.5% + 0.2%

= 9.30%

Now the variance would equal to the

= Weightage × (Return - Expected Return) ^2

For boom:

= 5% × (12% - 9.3%) ^2

= 0.3645

For normal economy:

= 85% × (10% - 9.3%) ^2

= 0.4165

For recession:

= 10% × (2% - 9.3%) ^2

= 5.329

So, the total variance would be

= 0.3645 + 0.4165 + 5.329

= 6.11%

4 0
3 years ago
Suppose one rental car company raises its prices and the rival car companies leave their prices unchanged. But when another rent
Karo-lina-s [1.5K]

Answer:

This situation is an example of cross Price elasticity of Demand

Explanation:

If change in Price in Rental Company A doesn't necessitate change in prices in Rental companies B.C.D.E & F

Then the products A has on offer are not close substitutes to the rival companies

However where Rental company G lowers his price and it immediately triggers a Price reduction in Companies B to F, then obviously they offer similar products that are close substitutes and serve similar segment or channel of the Market Size. Thus failure to lower their Price will automatically see Customers rent cars more from Company G.

This situation is an example of cross Price elasticity of Demand

7 0
3 years ago
Marta, the public relations manager of a local library, is meeting with the news media regarding a new reading program for child
Zolol [24]

Marta is performing the <u>spokesperson</u> role.

<u>Explanation:</u>

By communicating projects, successes and / or perspectives, Public Relation managers build and maintain an advantageous public image for their company or customer, and thus serve as a spokesperson. The role of public relations managers is to answer questions from the press and pitch stories to the media, plan publicity kits and coordinate press conferences. A good PR manager is ultra-engaged and maintains the eye on what's going on in the industries of the clients. They also remain up-to-date about current world events and developments that may affect the industries within which they work.

3 0
3 years ago
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