an example of overconfidence would be: Joe makes a stock price prediction and believes that there is only a 5% chance that his estimate is wrong; overlooking recent articles about the bad financial health of the business.
Buying stocks without any prior knowledge in finance would provide people with 50% rate of success. Good stock traders usually could improve their success rate up to 70% while success rate of 95% is very unlikely. Especially if the financial information showed a bad sign. The fact that Bill still put his money on the company's stock indicates that he is overconfident.
The Federal Reserve regulates the money supply by raising the requirements of the reserve.
<h3>What is Federal Reserve?</h3>
The Federal Reserve System is the U.S. of America's central banking system.
After just a series of financial turmoil, a need for centralized control of the financial system to mitigate credit crisis led to the enactment of the Federal Reserve Act on December 23, 1913.
The Federal can regulate the money supply by increasing reserve requirements, which reference to the sum of money institutions must maintain against bank deposits.
Banks will be able to loan more money when reserve requirements are lowered, increasing the total supply of money in the economy.
Therefore, by raising the reserve, the Federal Reserve regulated the money supply.
Learn more about the Federal Reserve, refer to:
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Answer:
SEASONS CONSTRUCTION
At the end of Dexc 31 2023
The revenue to be recognized will be = 25% * $18,600,000 = $4.650,000
The cost to be recognized = 25% * $18,750,000 = $4,687,500
Since percentage of completion method is being used, the revenue and cost to be recognized for the ywear 2023 will be based on the proportion of work completed in that year.
Explanation:
Answer:
C) Capital market instruments include both long-term debt and common stocks.
Explanation:
Capital market instruments include several types of financial instruments like stocks, bonds, US securities, foreign exchange, etc.
Since these financial instruments are basically debt and equity instruments, they are called securities. So another term used to refer to capital markets is the securities market. Capital markets are divided into two main classifications: primary markets where recently issued securities are traded, and secondary markets where investors trade previously acquired securities.
Answer:
The journal entries required for the redemption as well as the two instances of stock sale is given in details below:
Explanation:
DR CR
11-Oct Treasury stock 5000shares @$5 each 25000
Cash 25000
Being own shares repurchased
1-Nov Cash 31000
Treasury stock 1000 shares issued @$31 each 25000
Paid-in-capital treasury stock 6000
Reissuing treasury stock a higher price
25-Nov Cash 80000
Paid-in-capital treasury stock 6000
Retained earnings 14000
Treasury stock 100000
Reissuing treasury stock at a lower price
