When a broker-dealer maintains a firm market in a stock, that broker-dealer is committed to purchasing or sale of up to the stated maximum number of round lots (the standard trading unit of the stock) at the stated price.
This is further explained below.
<h3>What is a
firm?</h3>
Generally, A company providing professional services for compensation, such as law or accountancy, is called a "firm." One key tenet of "theory of the company" is that enterprises' primary purpose is to increase shareholder wealth.
In conclusion, By keeping a "firm market," a broker-dealer promises to buy or sell up to the maximum number of round lots (the stock's standard trading unit) at the quoted price.
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The answer is wear-and-tear theorists. Wear and tear speculations of natural maturing suggest that maturing in people and different creatures is just the aftereffect of widespread deteriorative procedures that work in any sorted out framework.
Answer: Supply curve - Increases rightwards
Market Price - Falls
Economic Profit - Decreases
Explanation: Perfect Competition market structure is with large number of buyers & sellers , homogeneous products & uniform prices , perfect information and free entry and exit.
'Free Entry and Exit' implies - no firm earns super normal (economic) profits or abnormal losses in long run. When firms are earning economic profits in short run, new firms enter (because of free entry) & the industry supply increase reducing price , which further reduces the super normal profits to normal profits in long run. Similarly - Abnormal losses make firms exit (freely), reduce supply & increase price , hence reducing abnormal losses & resuming normal profits.
Which of the following is a disadvantage to choosing a sole proprietorship business structure? The owner has personal responsibility for the company's liabilities.
A sole proprietorship is the simplest business form that can be operated. A sole proprietorship is owned by one individual and they are responsible for all of the debts the company has. The business is ran by one person and there is no distinction between the person and the business, both fall under the same number (social security number) when filing taxes.
Answer:
14.60%
Explanation:
The computation of market rate of return is shown below:-
Market rate of return = (Dividend × (1 + Growth rate)) ÷ Current price of stock + Growth rate
= ($2.8 × (1 + 3.8%)) ÷ 26.91 + 0.038
= ($2.8 × 1.038) ÷ 26.91 + 0.038
= $2.9064 ÷ 26.91 + 0.038
= 0.108 + 0.038
= 14.60%
So, for computing the market rate of return we simply applied the above formula.
