This can be a deterrent for engaging in practices that are ethically wrong during underwriting process.
Knowing that they could be fined large amount of money if found to be engaging in acts that ethically incorrect will serves to discourage investment banking firms from such acts.<span />
Answer:
(A) cognitive dissonance
Explanation:
The type of cognitive dissonance that appears when a customer seems to regret her or his purchase is commonly known as buyer’s remorse. It can be because customers made an impulsive purchase and thus now is regretting his or her decision, or because the item that she or he purchases are expensive in nature. In addition to the price of the purchased item, other factors that causes buyer’s remorse to arise are high involvement of the purchaser, compatibility of the product purchased, and the purchaser’s goals.
Jim is analyzing the <u>prospectus </u>through which he learns about the potential for profits, the risk involved, and the capital that is needed to become a shareholder of a company.
<h3>What is the significance of the prospectus?</h3>
It is crucial for an investor to get as a good deal of data as feasible approximately a funding earlier than placing your money into any company. One of the files provided through many businesses is the <u>prospectus. </u>
The prospectus presents you with data approximately the funding and allows you're making a knowledgeable choice as an investor.
Therefore, Jim is analyzing the <u>prospectus </u>through which he learns about the potential for profits, the risk involved, and the capital that is needed to become a shareholder of a company.
Learn more about <u>the prospectus:</u>
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Answer:
The time value of money is used to determine the fair value of the transaction ( B )
Explanation:
If a contract involves a significant financing component the time value of money is used to determine the fair value of the transaction and this is because the time value of money states that the money at hand ( available money ) is worth more than the identical sum of money in the future due to the earning capacity of the money.
therefore a contract involving a significant financing component ( present monetary component ) would have its fair value determined by the time value of money
Answer:
false
Explanation:
Paid-in capital is the amount of money or any other form that stockholders pay to the corporation for capital stock. it is considered as an important part of the equity in the business. paid-in capital can be paid for common or preferred stock.
it is considered a way through which stockholders can represent their funds by showing the amount of stock they have purchased
