Investors select a stock based on the cash they expect to receive from that stock. that cash comes in the form of a and b.
Investors are usually different from traders. Investors invest capital for long-term gains, while traders buy and sell securities repeatedly in pursuit of short-term gains. Investors typically generate income by investing capital in either stocks or debt.
So how does an investor choose which stocks to buy?He has two main investment styles: active and passive. Active investors try to outperform the market by buying stocks that they believe are undervalued, with the intention of selling when the stock price rises.
Stock pick. An active portfolio management approach that focuses on a favorable selection of specific stocks rather than broad asset allocation.
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The question is incomplete. Please read below to find the missing content.
Investors select a stock based on the case they expect to receive from that stock. That cash comes in the form of ____.
a. Dividends
b. The future sales price.
c. Interest payments.
d. Commissions.
Answer:
The answer is: Democratic management style
Explanation:
This management style is based on the belief that two heads are better than one, and that every employee (no matter position they hold) deserves to have a say.
So managers that follow this style usually encourage their employees to participate and share their ideas and suggestions. They tend to create horizontal organizations, but the final and last decision still belongs to the boss.
Employees usually like this system because they feel they are a valuable and important part of the organization. Many times it leads to higher efficiency and productivity.
As a downside, these organizations tend be more messy (informal) and decision making processes are very time consuming.
A prospectus is given to potential investors.
The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)
Jan. 1 Inventory 1,500
Cash 1,500
<h3>
What are journal entries?</h3>
- A journal entry is an act of keeping or producing records of any economic or non-economic transaction.
- An accounting journal, which shows a company's debit and credit balances, records transactions.
- The journal entry can be made up of multiple records, each of which is either a debit or a credit.
- Otherwise, the journal entry is termed unbalanced if the sum of the debits does not equal the total of the credits.
Inventory purchase journal entry:
- Say you purchase $1,000 worth of inventory on credit.
- Debit your Inventory account $1,000 to increase it.
- Then, credit your Accounts Payable account to show that you owe $1,000.
- Because your Cash account is also an asset, the credit decreases the account.
Therefore, the journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be (D)
Jan. 1 Inventory 1,500
Cash 1,500
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The question you are looking for is here:
The journal entry to record the receipt of inventory purchased for cash in a perpetual inventory system would be
(A) Jan. 1 cash 1,500
Account receivables 1,500
(B) Jan. 1 Purchases 1,500
Account payable 1,500
(C) Jan. 1 Inventory 1,500
Office Supplies 1,500
(D) Jan. 1 Inventory 1,500
Cash 1,500
Answer:
No, a currency carry trade with positive profit can not be conducted.
Explanation:
The currency carry trade is the trading strategy where investor funding from lower-yield currency to invest in higher-yield currency with expectation to earn positive profit from the yield differences between the two currencies.
However, this strategy only works when the difference is big enough to compensate for the depreciation ( if any) of the higher-yield currency against the lower-yield currency.
With the given information, the strategy will not work because the depreciation of NZ$ against US$ after one-year is too big to be compensated for the yield difference.
For specific example, suppose the strategy is conducted, in 2008, an investor will borrow, for example, US$1 at 4.2%, exchange it to NZ$1.71. Then, invest NZ$1.71 at 9.1%.
In 2019, an investor will get NZ$1.86561 (1.71 x 1.091). The, he/she exchanges at the 2019 exchange rate, for US$1.36176 (1.86561 / 1.37). While at the same time, he will have to pay back 1 x 1.042 = US$1.042 => The loss making in US$ is US$0.32.
