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3 years ago

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:

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You borrow $210,000 to purchase a home. the terms of the loan call for monthly payments over 30 years at a mortgage rate of 4.50

Dmitry_Shevchenko [17]

First step, find the monthly payments.
Borrowed amount, P = 210000
Monthly interest, i = 0.045/12
Number of periods, n = 30*12=360

Monthly payment
$A=\frac{P(i*(1+i)^n)}{(1+i)^n-1}$
$=\frac{210000(0.045/12*(1+0.045/12)^360)}{(1+0.045/12)^360-1}$
$=1064.0392$ [to the 1/100 of a cent]

2. Calculate interest accumulated over 60 months
$I=210000((1+0.045/12)^{60}-1)$
$=52877.12$

3. Calculate value of payments
$F=\frac{A((1+i)^n-1)}{i}$
$=\frac{1064.039150634359((1+0.045/12)^{60}-1)}{0.045/12}$
$=71445.50$ to the nearest cent

4. Calculate percentage of interest paid
A. as a fraction of future values
Percentage of interest
=52877.12/71445.50
=74.01%
As a fraction of total amounts paid
Percentage of interest
=52877.12/(60*1064.0392)
=52877.12/63842.35
=82.82%

6 0

3 years ago

Camino’s cost of goods sold and operating expenses are 80 percent variable and 20 percent fixed. Camino has received an offer fr

aniked [119]

Answer: -$140000

Explanation:

Total operating expenses, = fixed costs + variable cost

Fixed cost is 20% = $60000

Variable cost is 80%

Therefore Total Operating expenses is $300000

When we subtract the total operating expenses (300000) from the total revenue (160000) , we get -140000.

Camino's is having a net operating loss of $140000. To make profit, they need to sell above 37500 cups

7 0

3 years ago

How many economic impact payments were there in 2021.

olga2289 [7]

Answer:

three Economic Impact Payments

Explanation:

Recovery rebate credits (Economic Impact Payments) for 2020 and 2021. To provide financial relief during a pandemic, many Americans received three Economic Impact Payments (EIP) in 2020 and 2021. The third payment, which began rolling out in March 2021, served as an advance payment of the 2021 Recovery Rebate Credit.

6 0

2 years ago

Read 2 more answers

Suppose you are evaluating two mutually exclusive projects, A and B. Project A costs $350 and has cash flows of $250 and $250 in

ki77a [65]

Answer:

The answer is 30%

Explanation:

Solution

Given that:

Project A

Project A costs = $350

Cash flows =$250 and $250 (next 2 years)

Project B

Project B costs =$300

Cash flow = $300 and $100

Now what is the crossover rate for these projects.

Thus

Year Project A Project B A-B B-A

0 -350 -300 -50 50

1 250 300 -50 50

2 250 100 150 -150

IRR 27% 26% 30% 30%

So,

CF = CF1/(1+r)^1 + CF2/(1+r)^2

$-50 = $-50/(1+r)^1 + $150/(1+r)^2

r = 30%

CF = CF1/(1+r)^1 + CF2/(1+r)^2

$50 = $50/(1+r)^1 + $-150/(1+r)^2

r = 30%

Hence, the cross over rate for these project is 30%

Note:

IRR =Internal rate of return

CF =Cash flow

r = rate

5 0

3 years ago

A __________ describes the minimum qualifications a person must have to perform the job successfully.

Katena32 [7]

The correct answer here would be a job specification.

5 0

3 years ago