1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sashaice [31]
3 years ago
6

Why are primary and secondary markets governed by regulating bodies?

Business
2 answers:
tiny-mole [99]3 years ago
8 0

Answer:

The answer is stated below:

Explanation:

Primary market is the market where the securities are established or created. In this market, the firms float or sell the new bonds or the stocks to the public for the first time. The example of this market is IPO (stands Initial Public offering).

Secondary market is the market where the investors could sell as well as buy the securities, they already own. It is the stock market, though the stocks are sold on the primary market, when they initially issued.

Therefore, both the market are owned as well governed by the regulating bodies.

REY [17]3 years ago
6 0

Answer:

The answer is transparency.

Explanation:

You might be interested in
Which of the following is a critical dilemma when implementing fiscal policy in reference to timing lags?
Pepsi [2]

Answer: Option C

Explanation: In simple words, critical dilemma refers to the confusions and problems that may arise and are pretty hard to solve.

While implementing fiscal policies in an economy the authorities must have proper information however the information takes time and cost to get collected and processed.

This situation is called information lag and is a critical dilemma as the individuals in authority have to decide whether to go for information processing and collecting or not.

8 0
3 years ago
Longhorn Corporation provides low-cost food delivery services to senior citizens. At the end of the year, the company reports th
RUDIKE [14]

Answer:

The income statement, statement of stockholders' equity, and balance sheet for Longhorn Corporation is given below.

<u><em>The income statement</em></u>

Sales Revenue                   $ 67,700

COGS                                 ($ 53,400)

Delivery expenses              ($ 2,600)

Salary expenses                 ($ 5,500)

Net profit                             $ 6,200

<u><em></em></u>

<u><em>Balance Sheet</em></u>

Asset

Cash                                  $ 1,200

Equipment                        $ 29,000

Building                             $ 40,000

Supplies                             $ 3,400

Total Assets                      $ 73,600

Equity

Common Stock                $ 44,000

Retain earning                  $ 24,400

(18,200 + 6,200)

Liability

Account Payable              $ 4,400

Salaries payable                $ 8,00

Total Liabilities                 $ 73,600

<u><em>Statement of Stockholders</em></u>

Opening common Stock           $ 40,000

Addition                                       $  4,000

Closing common Stock              $  44,000

Retain earning Opening            $ 18,200

Net profit                                     $ 6,200

Retain profit Closing                   $ 24,400

Total Equity                                 $ 68,400

4 0
3 years ago
It is _______ for a company to issue equity than debt; it is ________ for an investor to buy equity in a company than debt in th
viva [34]

Answer:

It is <u>safer</u> for a company to issue equity than debt

It is <u>riskier</u> for an investor to buy equity in a company than debt in the same firm

Explanation:

If company issues debt that it has to make fixed interest payments, thus even if company is making losses, it has to pay interest which is not in case of equity. Hence, it is riskier option for the company to raise debt.

On the other, if investor in debt, then he will get fixed interest, thus debt option is relatively cheap than equity for investor

6 0
3 years ago
Authority to conduct open market operations, which consists of buying and selling of , rests with the Committee. Reserves equal
katovenus [111]

Answer:

If the Fed conducts an open market purchase by specifically buying government securities from the Bank, banks' reserves increase and the quantity of money increases.

Explanation:

The Federal Reserve (Fed) buys and sells government securities to control the money supply. This activity is called open market operations (OPO). By buying and selling government securities in the free market, the Fed can expand or contract the amount of money in the banking system and pursue its monetary policy.

To increase the money supply, the Fed will purchase bonds from banks to inject money into the banking system.

The Federal Reserve's latest effort to calm the financial system — pumping $100 billion a day into trillion-dollar funding markets — is intended to be a temporary role, born of necessity. But it may turn out to be a significant expansion of the Fed's footprint.

3 0
3 years ago
Which of the following is not descriptive of external environmental scanning? used as a tool for corporations to avoid strategic
julsineya [31]

Answer:

used to identify major stockholders

Explanation:

Environmental scanning is a management strategy that focuses on systematically acquiring informations about occasions, trends, events or patterns through surveys and analysis of these information  in an organisation's external and internal environment. The informations acquired through environmental scanning is then used by the executive management in strategically planning the organisation's future and exploitation of available opportunities for the success of the organization.

The internal environmental scanning offers an organization strength and weakness while the external environmental scanning provides information about opportunities and threats.

Generally, the external environmental scanning gives an overview of the opportunities in the market as well as potential threats to an organization.

Hence, the following are descriptive of an external environmental scanning;

1. Used as a tool for corporations to avoid strategic surprise.

2. Used to monitor, evaluate, and disseminate information relevant to the organizational development of strategy.

3. Used to determine a firm's competitive advantage.

4. Used as a tool to ensure a corporation's long-term health.

7 0
3 years ago
Other questions:
  • Hey guys its emogoth i needed to make a new one
    5·1 answer
  • Elliot essman asserts that america is a(n) ____________ because the very wealthy do not have much impact on the country in gener
    10·1 answer
  • Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resourc
    11·2 answers
  • Rottino Company purchased a new machine on October 1, 2020, at a cost of $150,000. The company estimated that the machine will h
    5·1 answer
  • _________ is a portfolio analysis model developed by the Boston Consulting Group that assesses the potential of successful produ
    15·1 answer
  • Flipco signed a 10​-year note payable on January​ 1, 2018​, of $ 800, 000. The note requires annual principal payments each Dece
    14·1 answer
  • A manager wants to motivate the maintenance staff to be more productive. She starts by providing training and assures employees
    13·1 answer
  • Assume that investment spending
    10·1 answer
  • Strongheart Enterprises anticipated selling 27,000 units of a major product and paying sales commissions of $6 per unit. Actual
    8·1 answer
  • Jordan has $5. 37, which he is using to buy ingredients to make salsa. He is buying one red pepper for $1. 29 and three pounds o
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!