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Arisa [49]
2 years ago
12

An IAR has opened an account for a new customer. The customer is "on the road" for 3-4 weeks per month and has given the IAR ver

bal authorization to trade her account on a discretionary basis. The IAR sends the customer a written power of attorney for signature and return. 1 week after opening the account, the IAR hears of a good investment opportunity and buys 500 shares of the XYZ stock at $50 for the customer's account. 3 weeks later, the stock declines and the IAR sells the stock at $30 per share. The customer never returned the signed power of attorney. Liability for the loss rests with the:
Business
1 answer:
kobusy [5.1K]2 years ago
6 0

Answer:

The investment advisory firm which employs the investment adviser representative (IAR).

Explanation:

FINRA's rules specifically state that before any transaction, the IAR must have a signed power of attorney. The IAR cannot start trading or operating with the client's money until he/she has received a signed written power of attorney from the client. Only after the signed power of attorney has been given tot eh IAR, can he/she act on discretionary basis.

If the IAR is not a registered broker-dealer, then NASAA rules state that oral agreements are valid for up to 10 business days, but the IAR must have a written authorization after that time expires. I.e. the IAR could buy the stocks, but he/she was not authorized to sell them. So any loss is responsibility of the firm that employs the IAR.

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ABC uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retai
Licemer1 [7]

Answer:Ending Inventory at Cost= $981,248.40

Explanation:

                                     Cost                      Retail

Beginning inventory  $393,500         $594,000

purchases                      $3,408,000      $5,193,600                

freight in                        $159,500,

net markups                                                     $414,000

Total                          $3,961,000                     $6,201,600

Sales                                                 $4,666,000

Ending Inventory at Retail:=(Beginning inventory + purchases +net markups - Sales during the current year

594,000 + $5,193,600   +  $414,000- $4,666,000,  = $1,535,600

Cost to Retail Ratio:( Beginning inventory + purchases+freight in)/ (Beginning inventory + purchases +net markups )

=($393,500 + $3,408,000 +$159,500,) ÷ (594,000 + $5,193,600   +  $414,000) =$3,961,000/$6, 201, 600= 0.638= 0.639

Ending Inventory at Cost:   Ending Inventory at Retail x Cost to Retail Ratio

$1,535,600 x 0.639 = $981,248.40

8 0
3 years ago
Crabby Shores stock is expected to return 15.7 percent in a booming economy, 9.8 percent in a normal economy, and 2.3 percent in
VLD [36.1K]

Answer:

The expected return on the stock is 9.785%

Explanation:

The expected rate of return on a stock is the return of the stock expected in different scenarios multiplied by the probability that those scenarios will occur. The expected return can be calculated as follows,

r = rA * pA + rB * pB + ... + rN * pN

  • Where,
  • rA, rB to rN expects return under different scenarios
  • pA, pB to pN represents the probabilities of each scenario

Thus,

r = 0.157 * 0.15  +  0.098 * 0.73  +  0.023 * 0.12  

r = 0.09785 or 9.785

4 0
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A frequently used form of overdraft protection is A. when a merchant refuses to accept checks and therefore never has any checks
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3 years ago
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Answer:

(1) The number of shares of common stock that Francis should use in calculating basic earnings per share for 2019 :

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                                         = 29000

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                           =  2.5

(3) Diluted EPS for 2019

           Diluted EPS = (net income - preferred stock dividned )/ (Common               Shares Outstanding + Unexercised Employee Stock Options + Convertible Preferred Stocks + Convertible Debt + Warrants)

                           =  72500/(29000+ 2500 + 250 )

                            = 2.28            

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Answer:

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