Answer:
Semi-strong Form Efficient.
Explanation:
There are three levels of market efficiency as weak, semi-strong and strong.
In a semi-strong form efficient market, the stock prices change independently of the previous return points and the current information so it is not possible to predict the future stock prices.
The example given in the question, which states that the neighbor has non-public information, can be classified as a semi-strong form efficient market.
I hope this answer helps.
Answer:
D. Recommendation to buy life insurance does not make the investment advice any less objective.
Explanation:
investment adviser representative are also regarded as financial planner are advisers that gives advice in term of financial service to firms or individual or his/ her customer
In the situation described in the question whereby, the agent recommends that a customer sell a mutual fund holding and use the proceeds to buy life insurance, then these information are needed to be disclosed to the customer
✓. Sale of the mutual fund mayor is alt in a taxable event to the customer
✓Recommendation to purchase life insurance is in no way connected to the services offered by the advisory firm
✓Agent will earn a commission on the life insurance purchased by the customer
All transactions b. affect assets, liabilities, and/or stockholders' equity, and d. must affect both assets and stockholders' equity.
<h3>What is the accounting equation?</h3>
The accounting equation shows that assets are equal to liabilities and equity.
The implication of the accounting equation is that every transaction has at least two effects on the elements of financial statements, given their linkages.
Thus, the correct options are Options B. and D.
Learn more about the accounting equation at brainly.com/question/24401217
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Answer:
1. Damaged or obsolete goods are not counted in inventory if they cannot be sold.
2. If these can be sold… Cost should be reduced to Net Realizable Value
Explanation:
The law relating to the valuation of inventory is that ''inventory should be valued at lower of 'Cost' and 'Net Realizable Value'.
Therefore in the case of damaged or obsolete goods, they have to be eliminated from inventory, otherwise it will lead to overvaluation.
However in the case where these can be sold, They have to be valued at lower of 'cost' or 'salable value', implying that 'Cost' should be reduced to 'Net Realizable Value'
