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Papessa [141]
3 years ago
11

If many investors quickly sell an IPO stock in the secondary market, there will be ____ on the stock's price.a. upward pressureb

. downward pressurec. no additional pressured. e.all of the above
Business
1 answer:
Artyom0805 [142]3 years ago
8 0

Answer:

b. downward pressure

Explanation:

Initial Public Offering is a market launch of shares of a company to be sold to institutional, retail investors.

IPOs are sold in Primary stock markets, where new new securities are created by companies & sold to public for the first time.

However, there are also secondary stock markets, where old previously launched securities are sold second handed-ly by investors.

If the stock is quickly sold in secondary market, more of its demand will be satisfied by secondary market.

This will reduce its demand in primary markets, so it will create downward pressure on the stock's price

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The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The compan
Digiron [165]

Answer and Explanation:

a)

Journal entries

Mar.31

Dr Investment in Distribution Transformers shares $ 400,000.00

Cr Cash $ 400,000.00

Sept.1

Dr Investment in American Instruments bonds $900,000.00

Cr Cash $900,000.00

Sept.30

Dr Cash ($400,000 x 8%/2) $ 16,200.00

Cr Investment revenue $ 16, 000.00

Oct.2

Dr Cash $ 425,000.00

Cr Investment in Distribution Transformers $ 400,000.00

Cr Gain on sale of investments $ 25,000.00

Nov.1

Dr Investment in M&D Corporation shares $1,400,000.00

Cr Cash $1,400,000.00

Dec.31

Dr Investment revenue receivable $ 30,000.00

Cr Investment revenue ($900,000 x 10% x 4/12) $ 30,000.00

Dec.31

Dr Investment revenue receivable $ 14,000.00

Cr Investment revenue ($1,400,000x 6% x 2/12) $ 14,000.00

Dec.31

Dr Fair value adjustment (calculated below) $ 10,000.00

Cr Net unrealized holding gains and losses–OCI $ 10,000.00

Available for sale securities Cost Fair market Value Profit/Loss

M & D Corporation shares

$1,400,000.00 $ 1,460,000.00 $ 60,000.00

American Instruments bonds $900,000.00 $850,000.00 ($50,000.00)

Totals $2,300,000.00 $2,310,000.00 $ 10,000.00

b)

Income Statement

Investment Revenue = $16,200 + $30,000 + 14,000 $ 60,200.00

Gain on sale of investments $ 25,000.00

Statement of comprehensive income

Net unrealized holding gains and losses on investments $ 10,000.00

Balance sheet:

Current Assets

Investment revenue receivable $ 30,000.00

Securities available-for-sale $2,300,000.00

Add: Fair value adjustment $ 10,000.00 $2,310,000.00

Shareholders’ Equity

Net unrealized holding gains and losses on investments $ 10,000.00

6 0
3 years ago
What is one action an employer can take to lower wage levels?
Serjik [45]
The answer is C. Replace workers with machine

It's common for a company to replace workers with maschines in order to do hard menial labour such as wrapping packages, cutting products, shaping the products, moving the raw material, etc. which could increase efficiency and lower wage levels at the same time
6 0
3 years ago
Taking explicit account of a rival's expected response to a decision you are making is called:
IgorC [24]

The answer is strategic decision making. This is also referred as strategic planning in which a group of people or an individual engage into making or creating the goals or objectives that the organization would want to achieve or tackle in a way of providing altering strategies and to obtain the goal that they aim for.

7 0
3 years ago
Who are the internal and X ternal users of accounting information
dezoksy [38]

Answer and Explanation:

The internal and the external users or parties of accounting information are as follows

Internal users: These are the users who are belonged from the company i.e. shown below:

1. Owners

2. Managers

3.Employyes

External users: These are the persons who are outsiders such as

1. Suppliers

2. Customers

3. Tax authorities etc

3 0
3 years ago
The following information is taken from the production budget for the first quarter: Beginning inventory in units 1000 Sales bud
olga2289 [7]

Answer:

The correct answer is 408,000 units

Explanation:

Computing the finished goods units to be produced during quarter is as:

= Desire units - Beginning inventory units

where

Desire units is 3,000

Beginning inventory units is 1,000

So,

=3,000 units - 1,000 units

= 2,000 units

Now, computing the finished goods units as:

Finished goods units = 2,000 units + Sales budgeted for the quarter

Finished goods units = 2,000 units + 406,000 units

Finished goods units = 408,000 units

NOTE: It should be 408,000 not 40800.

7 0
3 years ago
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