A market for existing financial securities that are currently traded among investors is called the Secondary market.
A secondary market is a market for the purchase and sale of existing securities or other assets. They differ from primary markets, where the assets were created. Generally, most investors will only trade on secondary markets.
Transactions in the secondary market are undertaken with other investors rather than the security issuer. The procedure is comparable to buying products from the classifieds or a used car from a dealership rather than the manufacturer.
Stocks and bonds purchased in a retirement plan or through a brokerage account, for example, are traded on secondary markets.
Assume you have two portfolios: one through an employee stock ownership plan and the other through a discount brokerage. The main market transaction occurs when you purchase stock directly from the corporation, like in the first plan. It is a secondary market transaction when you buy in a discount brokerage account through stock exchanges.
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Government regulations help balance negative externalities such as no smoking rules enforced to mitigate the effects of second-hand smoke.
<h3>What is negative externality?</h3>
Negative externality is when the activities of producers or consumers negatively affect third parties not involved in production or consumption activities.
For example, smoking affects those who are not smoking. They are affected by the second-hand smoke. To prevent this, no smoking rules can be enforced.
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Answer:
Inferior good
Explanation:
Inferior goods are those type or the kind of goods whose demand falls or decline when the income of the person or customer or individual rises or increases.
In short, the demand of the inferior goods is related inversely to the customer or person income.
So, in this case, the person bought 10 frozen pizzas per month, but when the person start earning, then the person would not buy the frozen pizzas. The frozen pizza will be inferior good for the person as the income of the person will rise.
Answer:
a.67.9%.
Explanation:
Debt to Total Assets Ratio = Total Liabilities / Total Assets x 100
<em>Total Liabilities = $95,000,000
</em>
<em>Total Assets = $140,000,000
</em>
Debt to Total Assets Ratio = $95,000,000 / $140,000,000 x 100
Debt to Total Assets Ratio = 0.679 x 100
or
Debt to Total Assets Ratio = 67.9%
Hence, The Assets of Marker Co. are 67.9% funded by creditors.
Answer:
A) True
Explanation:
The Balance Sheet is a snapshot of the financial situation of a company at the end of the accountable period. It shows which productive resources (assets) the company has for the development of its activities and how they are financed. Assets can be financed by external (Obligation with creditors – Liabilities) or internal sources (Issuing equity shares - Shareholders' equity). As every Asset must be financed either or both with Liabilities or Shareholders' equity, in the Balance Sheet, the accountable equation is represented.
