All categories

3 years ago

What is a broker? Career Prep Edge

Business

1 answer:

Colt1911 [192]3 years ago

5 0

Answer:

A broker refers to an individual who is saddled with the responsibility of buying and selling stocks (shares) on a stock exchange market on behalf of his or her clients.

Explanation:

A broker refers to an individual or business firm that is saddled with the responsibility of buying and selling stocks (shares) on a stock exchange market on behalf of his or her clients.

Generally, a broker acts as an intermediary between a buyer (investor) and a seller (securities exchange) for a commission or an agreed upon fee after executing the deal. Thus, a broker also referred to as a stockbroker acts as a principal party in the buying or selling of stocks or securities in the financial markets.

Additionally, the actions or activities of a broker in the financial market is regulated by regulatory (financial) institutions such as the securities and exchange commission (SEC).

You might be interested in

An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor

Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return = 10% × ( 1 - 0.20 )

rate of return = 8 %

5 0

3 years ago

Verify describe the distillation process of alcohol

klio [65]

It’s a process that can be used to separate pure liquids from a mixture of liquids

5 0

1 year ago

You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account an

Nikolay [14]

Answer:

Ans. Assuming that the withdrawal period is 300 months (25 years), you can withdraw every month $15,547.96

Explanation:

Hi, first, we have to take to future value (30 years in the future) the invested capital (both the stock account and the bond account). From there, we will consider the sum of both future values as the present value of the annuity that you are about to receive for the next 25 years (300 months). But before we do all that, we need to convert the return rates (compounded monthly) into effective monthly rates, for that we just go ahead and divide each one by 12, as follows

r(Stock) = 0.105/12= 0.00875

r(Bond)= 0.061/12 = 0.00508

r(Combined Account)= 0.069/12=0.00575

Now we are ready, first, let´s find the future value of the stock account.

$FV(stock)=\frac{750((1+0.00875)^{360}-1) }{0.00875} =1,887,300.74$ }

Now, let´s find out how much will it be in 30 years, investing $325 per month, at the end of the month, at 0.508% effective monthly.

$FV(Bond)=\frac{325((1+0.00508)^{360}-1) }{0.00508} =332,526.95$

And then we add them up and we get:

$FV(stock)+FV(bond)=1,887,300.74+332,526.95=2,219,827.69$

Ok, now let´s find the annuity (monthly withdraw) taking into account that we are going to make 300 withdraws at a rate of 0.575% effective monthly,

$[tex]2,219,827.69=A(142.7729593)$

$\frac{2,219,827.69}{142.7729593} =A$

$A=15,547.96$ \frac{A((1+0.00575)^{300}-1) }{0.00575(1+0.00575)^{300} }[/tex]

Best of luck.

5 0

3 years ago

Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $ 3 comma 620 comma 000 loan, to assess

stepan [7]

Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.

Explanation:

Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as

Total Liabilities/ Total Assets

The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.

5 0

3 years ago

How do individuals benefit from having health insurance? Why is health insurance likely to become a bigger and more complex issu

SVEN [57.7K]

Answer: Individuals benefit from health insurance because it's helps them pay off health debt when they may not have the funds at the moment to do so, especially in cases where the bills can be very expensive.

Explanation:

Health insurance could be described as insurance that covers the health bills of individuals when they are sick or have an accident.

Individuals benefit from health insurance because it's helps them pay off health debt when they may not have the funds at the moment to do so, especially in cases where the bills can be very expensive.

Health insurance would likely be a problem in the future due to the cost. Health bills can be very expensive, especially when it involves illness that require lots of operations or much bills to pay. This has made organizations begin to withdraw the benefits of health insurance for their staff.

5 0

3 years ago