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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.

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Tonelli Trucking buys a $65,000 truck on credit. Which financial statement will be affected by this transaction?
Arlecino [84]

Answer:

A : balance sheet only

Explanation:

In the given question, the truck was purchased on credit and the truck is a fixed asset that comes under the balance sheet only because in the income statement, the expenses and revenues are recorded whereas retained earnings records profit which is left to the company.  

So, it affects the balance sheet only. As balance sheet records all types of assets and all types of liabilities plus shareholder equity.

6 0
3 years ago
Katlin Markets is debating between a levered and an unlevered capital structure. The all-equity capital structure would consist
Goshia [24]

Answer:

e. $42,857.14

Explanation:

The computation of the break-even level of earnings before interest and taxes between these two options is shown below:

(EBIT) ÷ (Number of shares) = (EBIT - Interest) ÷ Number of shares  

(EBIT) ÷ (75,000 shares) = (EBIT - $20,000) ÷$40,000

40,000 × EBIT = 75,000 × EBIT - $1,500,000,000

35,000 × EBIT = $1,500,000,000

After solving this,  

The EBIT would be $42,857.14

The interest expense

= $320,000 × 6.25%

= $20,000

8 0
2 years ago
انا<br>E-commerce is a win win situation<br>for both antropnnwch and consumen<br>Illuminate​
RideAnS [48]

Answer:

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6 0
2 years ago
For the budget period ending December 31 of the current year, Aaron Corporation estimates its ending balances for cash as $4,000
jek_recluse [69]

Answer:

The amount of total current assets that will be reported on the budgeted balance sheet is $40,000.

Explanation:

Total current assets

= Cash + Accounts receivable + Finished goods inventory + Raw materials inventory

= $4,000 + $16,000 + $12,000 + $8,000

= $40,000

Therefore, The amount of total current assets that will be reported on the budgeted balance sheet is $40,000.

3 0
3 years ago
Which of the following organizations emerged from the Bretton Woods agreement of 1944, where a group of international leaders de
Fofino [41]

Answer:

International Monetary Fund, IMF and the World Bank

Explanation:

The Bretton Woods Agreement was negotiated in July, 1944 which established a new global monetary system. It made US dollar the global currency and replaced gold standard.

This agreement created The World Bank and International Monetary Fund (IMF) which would monitor the new monetary system.

The Bretton Wood system was dissolved in 1970's but IMF and The World Bank still exist and are strong pillars of global monetary system.

8 0
3 years ago
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