What is the difference between primary markets and secondary
markets?Explain
What is the difference between money markets and capital
markets?Explain
What are three (3) of the seven (7) types of financial
institutions? Include a description of the main services offered by
each. Explain
Why would the U.S. government, local governments, and
corporations issue bonds? Explain
Provide the definitions of a discount bond and a premium bond.
Give examples.
As owners, what rights and advantages do shareholders obtain?
Explain
Why might...
What is the differences between Money Markets and Capital Markets. Which would a smalll investor prefer and why? List reasons why Money Markets are important.
2) Explain the Asset Liability funding strategy. What is the
difference between the money markets and the capital markets?
Explain ownership with respect to fixed income and equity
instruments. With respect to equities, what does residual claim and
limited liability imply?
Explain the difference between primary and secondary capital
markets and discuss why the existence of secondary markets is
important.
What are the reasons why debt capital in a firm typically has a
lower cost of capital than does equity capital in the same firm?
Will debt capital in a firm always have a lower cost of capital
than equity capital in a different firm? Why or why not?
Explain the difference between systematic risk and
non-systematic risk and support...
1. What is the difference between the transactions demand for
money and speculative demand for money? 2. What is the measure of
risk? How can we explain it? 3. How according the theory we define
Risk aversion, Risk preference, Risk indifference? 4. What
characteristics of bonds equities determine their risk? 5. What is
the condition for optimal portfolio selection? 6. How the risk
aversion influences on the portfolio selection? How could we
estimate the investor’s risk preferencies?