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OLga [1]
3 years ago
6

Arbitrage is used successfully by many active securities investors. True statements about arbitrage include which of the followi

ng? (Select all that
apply.)
It is basically buying one market issue as you sell another.
It is a high-risk but highly profitable trading technique.
It can be a good way to increase portfolio value.
Transaction costs must be applied to the trades.
Business
1 answer:
lakkis [162]3 years ago
4 0

Answer:

It can be a good way to increase portfolio value.

Explanation:

Arbitrage trading involving buying an investment instrument in one market and simultaneously selling it in another.  Arbitrage trading takes advantage of unadjusted/ unsynchronized prices (market inefficiency) in different markets. Stock XY may be trading at a price of $45.41 in market A and $45.51 in market B. An investor can buy the stock in Market A and, at the same time, sell it in market B, thereby gaining $0.10 per stock.

Arbitrate trading is a low-risk investment strategy, but its returns could be great. Trades are executed simultaneously, minimizing risk. Rewards are constant. Arbitrate trading is a good way of growing a portfolio due to its low-risk and almost guaranteed profits characteristics.

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A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50
34kurt

Answer:

Company should continue with old machine (Alternative 1)

Explanation:

Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

DIFFERENTIAL ANALYSIS

Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income

REVENUES

Proceeds from sale of machine

$0 $50500 $50500

COSTS

Purchase price $0 -$75000 -$75000

Direct labor -$56000 -$37000 19000

(11200*5 = -56000)

(7400*5 = -37000)

Income (loss) -$56000 -$61500 -$5500

Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)

6 0
3 years ago
. Define a primary and secondary market for securities and discuss how they differ. Discuss how the primary market is dependent
Amanda [17]

Explanation:

Primary market for securities is one that provides access to buy new new issues of stocks and bonds of a company. A good example of primary market is an Initial Public Offering (IPO), organized by a company that wants to sell it's shares for the first time to investors.

While Secondary market, are places to sell securities to a secondary (second) buyer from the current security owner who bought from the primary market.

The primary market is dependent on the secondary market since it is the demand from the secondary market that determines the asset valuation of the primary market.

3 0
3 years ago
On June 1 of the current tax year Elisha and Ezra (who are equal partners) contribute property to form the Double E Partnership.
Helga [31]

Solution:

The relationship is called the deal to run the company by adding money, by distributing the business risk, etc. We share profit and loss from their relationship and the net profit is the partner's profits.

Calculating the basis of partners

Elisa's basis in partnership :

Particulars                                                         Amount $

Cash contribution                                                  200,000

Add:  

Share of the liability on the contributed land   70,000

Share of the construction debt                           10,000

Share of the accounts payable debt                     4,100

Share of partnerships taxable income                    15,000

Hence, Elisha's basis in the partnership on December 30. $299,100

Ezra's basis in partnership

Particular                                                             Amount $

Land and building                                                     340,000

Less: Debt assumed by the partnership             140,000

Add:  

Share of liability on contributed land                      70,000

Share of construction debt                                      10,000

Share of accounts payable debt                               4,100

Share of partnerships taxable income                      15,000

Ezra's basis in partnership on December 30. $299,100

8 0
3 years ago
What financial behaviors will typically lead to a low credit score?
Leviafan [203]
Here are some behaviors that will give you low credit score :

- If you always maxed out your credit card limits, it make you seems irresponsible 
- If you never paid your credit bills on time
- If you always change your living address 

but as long as you have a good history of paying your credit bills on time, your credit score will be fine

4 0
2 years ago
Read 2 more answers
Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. The Governmental Pro
Sever21 [200]

Answer:

c) $28,200

Explanation:

Calculation for What is the company's net operating income (loss)

Governmental products division's divisional margin segment $41,300

Add Export Products Division's divisional segment margin $93,700

Total divisional segment margin $135,000

($41,300+$93,700)

Less Common fixed expenses not traceable to the individual divisions ($106,800)

Company's net operating income $28,200

($135,000-$106,800)

Therefore the company's net operating income is $28,200

6 0
2 years ago
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