1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nikklg [1K]
3 years ago
13

"You are in the middle of a discussion with an institutional client over the phone, where you recommend that the client buy 100,

000 shares of ABC stock. It looks like the client may be interested in making the purchase. Your cubicle is within earshot of the neighboring cubicle. Just before your client tells you take the order to buy, you overhear your colleague, the representative in the neighboring cubicle, selling 10,000 shares of ABC stock to his client. Which statement is TRUE about this situation?"
Business
1 answer:
docker41 [41]3 years ago
3 0

Answer:

The colleague has committed a violation because your customer's order could move the price of ABC stock

Explanation:

Front running is also called tailgating. It is a prohibited practice where a trader enters into a position security based on non-public information about a large trade that will influence the price of the security.

The trade is initiated to take advantage of the new price that the large trade will cause. The position is entered before the large trade occurs.

In this scenario your neighbour heard you telling your client to but 100,000 share of ABC. Because the transaction will influence the market he also tells his client to buy 10,000.

This is tailgating and it is a violation.

You might be interested in
Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an Amazon Kindle for $350.
aniked [119]

Answer:

A.50 months

B.12.92 months

C.$112.38

Explanation:

a). Using this formula

PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]

Where,

PV of Annuity =$350

Monthly Payment =$10

r=(0.18/12)

Let plug in the formula

$350 = $10 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]

$350 / $10 = {1 - (1.015)-n} / 0.015

35 * 0.015 = 1 - (1.015)-n

(1.015)-n = 1 - 0.525

-n[log(1.015)] = log(0.475)

-n[0.0149] = -0.7444

n = -0.7444 / -0.0149

n= 50 months

b). Using this formula

PV of Annuity = Monthly Payment * [{1 - (1 + r)-n} / r]

Where,

PV of Annuity =$350

Monthly Payment =$30

r=(0.18/12)

Let plug in the formula

$350 = $30 * [{1 - (1 + 0.18/12)-n} / (0.18/12)]

$350 / $30 = {1 - (1.015)-n} / 0.015

11.67 * 0.015 = 1 - (1.015)-n

(1.015)-n = 1 - 0.175

-n[log(1.015)] = log(0.825)

-n[0.0149] = -0.1924

n = -0.1924 / -0.0149 =

n=12.92 months

c). Calculation for the Total Amount Paid under $10-a-month plan

Using this formula

Total Amount Paid under $10-a-month plan = No. of Payments * Monthly Payment

Where,

No.of Payments =50

Monthly Payment=10

Let plug in the formula

Total Amount Paid under $10-a-month plan= 50 * $10 = $500

Calculation for the Total Amount Paid under $30-a-month plan

Using this formula

Total Amount Paid under $30-a-month plan = No. of Payments * Monthly Payment

Where,

No. of Payments =12.92

Monthly Payment=$30

Let plug in the formula

Total Amount Paid under $30-a-month plan= 12.92 * $30 = $387.62

Hence,

Total Amount Paid under $10-a-month plan -Total Amount Paid under $30-a-month plan

= $500 - $387.62

= $112.38

7 0
3 years ago
Please Help. Career Explorations
earnstyle [38]
Ok so you need to explain what the commminuty needs like for example what people needs or you can search it up and look if there is lack anywhere and look up
7 0
3 years ago
On January 1, 20Y3, The Simmons Group, Inc., purchased the assets of NWS Insurance Co. for $37,152,500, a price reflecting an $5
Triss [41]

Answer:

The Simmons Group, Inc.

a. December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

b. Effects on the accounts of the December 31, 20Y9 adjustment for the goodwill impairment:

1. Impairment loss of $3,901,012 will be accounted for in the Income Statement for the year, thus reducing the reported profits by $3,901,012.

2. Goodwill be reduced to $1,671,863 in the balance sheet by deducting the impairment loss of $3,901,012 from the book value before the impairment.

Explanation:

a) Data and Calculations:

Jan. 1, 20Y3, Purchase price of NWS Insurance Co. = $37,152,500

Goodwill on acquisition = $5,572,875

December 31, 20Y9, the book value of Goodwill before impairment = $5,572,875

Impaired value - $1,671,863

Impairment loss = $3,901,012 ($5,572,875 - $1,671,863)

b) The Goodwill impairment shows that the carrying amount, $1,671,863, is less than the fair value of $5,572,875.  Goodwill is an intangible asset which Simmons Group acquired from NWS Insurance on January 1, 20Y3.  It is annually tested for impairment by comparing the fair value with the carrying value.  

6 0
2 years ago
What role should government play in a free market economy?
igor_vitrenko [27]
Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
8 0
3 years ago
Read 2 more answers
If individuals and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits,
tresset_1 [31]
The answer to this question is "Moral Hazard". Hence I<span>f an individual and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits, they are more likely to engage in irresponsible and even unethical behavior. this situation is known as a MORAL HAZARD. This is a belief of a company that they can pursue rewards without facing a problem or any issue.</span>
6 0
3 years ago
Other questions:
  • Nader, Inc., has the following information available from prior month and the general ledgert: Costs in Beginning WIP Costs adde
    7·1 answer
  • Amy manages mobile device security for her company, an insurance firm. The company currently uses BYOD. She’s concerned about em
    10·1 answer
  • Which type of competitive strategy is characterized by convincing rivals not to enter a price war, protection from customer pres
    8·1 answer
  • What does a general disk cleanup do?
    11·1 answer
  • The financial records of Sunland Inc. were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain st
    5·1 answer
  • If a $500 billion increase in investment spending increases income by $500 billion in the first round of the multiplier process
    6·1 answer
  • Suzette is receiving $10,000 today, $15,000 one year from today, and $25,000 four years from today. She will immediately invest
    8·1 answer
  • Proverbial Corp. signed a 6-year note relating to the purchase of a new delivery fleet; annual payments are due at the end of th
    5·1 answer
  • Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most bal
    11·1 answer
  • The Federal Reserve System consists of ____________
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!