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3 years ago

Explain how the stock market operates, and list the distinctions between the different types of stock markets

Business

1 answer:

nasty-shy [4]3 years ago

4 0

Answer:

When you invest in the stock market your are buying a small piece of a company. Let's say you think that elon musk will evolve tesla's and tesla will be the largest car brand around the world. Then you would want to buy a piece of tesla so that you can make money as the company grows.

Why would you want to invest in the stock market?

In this modern day companies are growing more than ever and will continue to as long as companies and businesses are around, and this is how you can make money in the stock market. Back in the day stocks like netflix, amazon and apple were as low as $5 a share and this was when the companies weren't as famous. As these industries and companies started to grow, you can see the growth of the stock price over the course of time. If you bought multiple shares of these stocks back when it was only $5 for ONE share, you would have a lot of money just made in the stock market.

The stock market goes up and down due to supply and demand. Prices go up when there are more buyers than sellers and will go down if there are more sellers than buyers.

I don't know if this answers your question completely but this is just a basic explanation.

Explanation:

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You have $500,000 available to invest. The risk-free rate as well as your borrowing rate is 8%. The return on the risky portfoli

malfutka [58]

Answer:

d.borrow $375,000

Explanation:

Given that

Amount available to invest = $500,000

Risk free rate = 8%

Return on the risky portfolio = 16%

Now the computation is shown below:

The interest rate should be

Interest amount on borrowings = $375,000 × 8% = $30,000

So, the total amount available to invest is

= $500,000 + $375,000

= $875,000

Now the total inflow is

= $140,000 - $30,000

= $110,000

The $140,000 is come from

= $875,000 × 16%

So the 22% is come from

= $110,000 ÷ $500,000

6 0

4 years ago

Berkshire Inc. uses a periodic inventory system. At the end of 2020, it missed counting some inventory items, resulting in an in

grandymaker [24]

Answer:

Assets understated by $660,000, liabilities understated by $198,000, and shareholders' equity understated by $462,000

Explanation:

Calculation to determine the effect of this error on Berkshire's December 31, 2020 balance sheet

BERKSHIRE'S December 31, 2020 balance sheet

Assets=$660,000 Understated

Liabilities=$198,000 Understated

Shareholders' equity = $462,000 Understated

($660,000-$198,000)

Therefore the effect of this error on Berkshire's December 31, 2020 balance sheet will be:

Assets understated by $660,000, Liabilities understated by $198,000, and Shareholders' equity understated by $462,000

7 0

3 years ago

Consider a firm with a 9.5% growth rate of dividends expected in the future. The current year’s dividend was $1.32. What is the

Over [174]

Answer:

Using the DDM method we can find the fair value of the stock. For that we need the current years dividend, the company's growth rate and the required rate of return on the stock.

The formula for DDM is

Value = D*(1+G)/R-G

D= 1.32

G= 9.5%

R=13%

1.32*(1+0.095)/(0.13-0.095)= 41.29

The fair present value of the company based on the dividend discount model is $41.29.

Explanation:

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4 years ago

Which of the following questions would most likely be important for ABC managers to evaluate as they consider expanding into the

Reika [66]

Answer:

What are the pricing strategies followed by competitor firms in Asia?

Explanation:

In simple words, any corporate entity willing to expand its business to a new market should first evaluate the existing business players. By doing so, the subject entity can get a significant level of understanding of the threats and opportunities available in the market.

Thus, ABC managers should first evaluate the strategies used by the existing participants of the market as after that they can make their plan to how attract other's customers towards ABC.

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3 years ago

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gregori [183]

Answer:

1.tinagcrash

2.of epertens

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3 years ago

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