Answer:
B) Liquidity
Explanation:
Liquidity is the ability of quickly buy or sell a stock without any price change.
Liquidity in a small-capitalization stock that has low trading volume is generally low that causes a problem for traders. It is so because in small capitalization, traders are unable to understand potential pitfalls and blindly invest in small-capitalization stocks which do not give profit as expected and the liquidity becomes low.
Hence, the correct answer is B) Liquidity.
Answer:
Since the actual performance of the separate account is actually higher than the assumed interest by 1 %, this means that K will be paid 1% more on the value of his/her annuity account.
Explanation:
An annuity account is a policy holder's investment account where the insurance company invests on behalf of the annuitant. The insurance company determine an assumed interest rate that will cover for the insurance company costs and the profit margin that will be paid to the annuitant periodically.
Annuity interest help investors plan for retirement income since the annuitant knows how much they expect to receive upon maturity of the policy. Knowing how to calculate the value of an annuity can also help investors to consider other investment options.
An assumed interest rate that is determined by the insurance company. This is the value of the annuity account and the annuitant should not be paid below the value of this rate. The actual interest rate is the actual performance of the investment in the market. If this rate increases, then the value of payment to be made to the annuitant also increases.
In our case, the actual performance of the separate account is actually higher than the assumed interest by 1 % this means that K will be paid 1% more on the value of his/her annuity account.
The main government restrictions on sole proprietorship are as follows:
1.The zoning laws that are put in place specifies the areas of a city or a country where various types of business activities can be pursued.
2. Sole proprietorship has to obtain city or country license before they can operate their businesses.
3. Professional sole proprietorships such as doctors must be licensed by the state.
When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made.
