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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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Why is the price elasticity of demand for coca-cola greater than the price elasaticity of deman for soft drinks generally?

wolverine [178]

A soft drink's price elasticity of demand is lower than Coca-Cola's, which is more sensitive to price. This is due to the ease with which consumers can switch from Coca-Cola to other comparable soft drink alternatives, such as Pepsi.

However, it would be challenging to replace soft drinks as a whole with alternative products. The price elasticity of demand for soft drinks, in general, is lower than the price elasticity of demand for Coca-Cola because there are no other close substitutes for them.
The quantity required of a thing or service changes in response to a change in the product's price, and this is measured by the price elasticity of demand. It is computed by subtracting the product's price change from the quantity demanded, divided by the product's price change.
Because the quantity of Coca-Cola products demanded frequently changes when prices vary, these products are thought to have an elastic demand.

Know more about coca-cola:

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1 year ago

Estimated expenses of liquidation were $10,000. Henry, Isaac, and Jacobs shared profits and losses in a ratio of 2:4:4. Before l

stealth61 [152]

Solution and Explanation:

The total amount of cash available for safe payments would be $25,000 (90,000 - 60,000 - 5,000). This amount will be distributed between Henry and Jacobs in the ratio of 6:4 meaning that $15,000 (25,000*60%) will be given to Henry and $10,000 (25,000*40%) will be given to Jacobs.

The value of $120,000 will be distributed to the partners as follows:

Henry Issac Jacobs

Equity 80,000 110,000 140,000

Less Loss on Assets 36,000 72,000 72,000

Liquidation Expenses 1,000 2,000 2,000

Balances 43,000 36,000 66,000

Less Distribution

of Safe Payments to Partners 15,000 0 10,000

Net Balances $28,000 $36,000 $56,000

4 0

3 years ago

Williamsburg Markets has an operating cash flow of $4,267 and depreciation of $1,611. Current assets decreased by $1,356 while c

kap26 [50]

To calculate free cash flow, locate the income statement and balance sheet. Start with net income and add back charges for depreciation and amortization. Make an additional adjustment for changes in working capital, which is done by subtracting current liabilities from current assets. Then subtract capital expenditure (or spending on plants and equipment)

6 0

3 years ago

Marin Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $201,600 and a rema

konstantin123 [22]

Answer:

The patent should be reported at $302,400 on the December 31, 2020, balance sheet.

Explanation:

Remaining useful life in month of patent on January 1, 2020 = 8 * 12 = 96 months

Remaining useful life in month of patent on December 1, 2020 = 96 - 11 = 85 months

Amortization of book value of patent in 2020 = (Patent Book value / Remaining useful life in month of patent on January 1, 2020) * 12 = ($201,600 / 96) * 12 = $25,200

Amortization of legal cost in 2020 = (Legal cost / Remaining useful life in month of patent on December 1,, 2020) * 1 = ($127,500 / 85) * 1 = $1,500

Carrying amount of patent = Patent Book value + Legal cost = $201,600 + $127,500 = $329,100

Patent book value on December 31, 2020 = Carrying amount of patent - Amortization of book value of patent in 2020 - Amortization of legal cost in 2020 = $329,100 - $25,200 - $1,500 = $302,400

Therefore, the patent should be reported at $302,400 on the December 31, 2020, balance sheet.

8 0

3 years ago

When Canada Dry first introduced Wink soda in the 1960s, it used the slogan, "Join the cola dropouts." The purpose of this adver

algol [13]

Answer:

The purpose of this advertising campaign was most likely to get customers to try the new product.

Explanation:

Since Wink soda was a new product of Canada Dry, it needed a catchy slogan to create awareness and invite customers to try out the product.

The slogan "Join the cola dropouts", was one that told customers that Wink soda was something different from cola, and should be given a try.

5 0

3 years ago