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3 years ago

Which TWO of the following statements are TRUE when a broker-dealer executes a principal transaction?

Business

1 answer:

tigry1 [53]3 years ago

6 0

Answer:

C) II and III

Act as a dealer
Charge a mark-up or a mark-down

Explanation:

Dealers can purchase and sell securities on their own accounts, this is called position trading. When they carry on this type of transactions, they charge markups instead of commissions.

Brokers act like agents, and they can only arrange a transaction between clients and they charge a commission for their work.

You might be interested in

If a new-car loan costs 6%, a used-car loan would cost approximately ___ percent

Rufina [12.5K]

I'm guessing it's like half of that.
So 3%.
However, I saw online 4.9 %

8 0

2 years ago

The california “standard form” policy of title insurance on real property insures against loss occasioned by:

AVprozaik [17]

The California “standard form” policy of title insurance on real property insures against loss occasioned by a forgery in the chain of recorded title.

To add, standard form policy is an insurance policy form that is designed to be used by many different insurers and has exactly the same provisions, regardless of the insurer issuing the policy.

3 0

3 years ago

Judy's Boutique just paid an annual dividend of $3.73 on its common stock. The firm increases its dividend by 3.40 percent annua

Talja [164]

Answer:

cost of equity = 12.16 %

Explanation:

given data

annual dividend of $3.73

increases dividend = 3.40 percent annually

stock price = $43.96 per share

to find out

What is the company's cost of equity

solution

we will use here Gordon model for compute company's cost of equity that is

market value = $\frac{dividend* ( 1+growth\ rate)}{cost\ of\ equity - Growth\ rate}$ ........................1

put here value we get

43.96 = $\frac{3.73* ( 1+0.034)}{cost\ of\ equity - 0.034}$

solve it we get

cost of equity = 0.121735

cost of equity = 12.16 %

8 0

3 years ago

Two companies are financed as follows: X Co. Y Co. Bonds payable, 9% issued at face $5,000,000 $3,000,000 Common stock, $25 par

BartSMP [9]

Answer:

The Earnings per Share on Common Stock X Co. $ Y Co is $9.15 and $10.05 respectively.

Explanation:

To compute the earning per share, first we have to calculate the net income and number of outstanding shares.

In mathematically,

Earning per share = Net income ÷ Number of outstanding shares

where,

Net income = Income before bond interest and income taxes - interest - tax

where,

Interest = Bonds × Rate

Tax = income tax rate × remaining balance

whereas, number of outstanding shares = Common stock ÷ price of shares

So,

For X,

The net income is = $2,280,000 - ($5,000,000 × 9%) - (40% of remaining balance)

= $2,280,000 - $450,000 - $732,000

= $1,098,000

And, Number of outstanding shares = 3,000,000 ÷ $25 = 120,000

So, Earning per share for X is

= $1,098,000 ÷ 120,000 = $9.15

For Y,

The net income is = $2,280,000 - ($3,000,000 × 9%) - (40% of remaining balance)

= $2,280,000 - $270,000 - $804,000

= $1,206,000

And, Number of outstanding shares = 3,000,000 ÷ $25 = 120,000

So, Earning per share for X is

= $1,206,000 ÷ 120,000 = $10.05

Hence, the Earnings per Share on Common Stock X Co. $ Y Co is $9.15 and $10.05 respectively.

3 0

3 years ago

Identify the key stakeholder groups and their specific expectations of the organization with reference to corporate social respo

cluponka [151]

Answer:

CSR needs more people who've been knowledgeable enough to have been able to communicate the correct language because then consumers can keep buying products. The further explanation is given below.

Explanation:

Here are the main different stakeholders:

Primary stakeholders:

These would be organizations that are straightforwardly (positive or negative manner) likely to be impacted either by words and deeds followed by the management. There have been circumstances in which some investors from both ends of the spectrum could advantage from legislation that hurts others, such as rent legislation that affects the homeowner and therefore advantages the tenant.

Secondary stakeholders:

These would be groups that have been obliquely influenced by the issue asked to take by the organization, such as a program designed to reduce domestic violence, are important to have a greater effect on emergency department managers by reducing the number of instances seen. The parties involved would be secondary consumers.

Numerous different key stakeholders may be:

Financing.
Representatives of the government implemented as well as elected.
The clergy as well as society.
Highly placed are most helpful to enhance the economic outlook, particularly for low-income incomes.
During an opportunity to boost community cohesion through social change, this same social environment besides members of both ethnicity could've been changed.
Even before workers become active throughout the decision-making steps, they are somewhat more prepared to succeed in cooperation as well as feel relaxed.

8 0

2 years ago