A Canadian citizen buys a newly issued share of stock in England, paying for his order...

A Canadian citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own Canadian bank account in Toronto. Explain shortly how this transaction is accounted for in the balance of payments

Solutions

Expert Solution

Answer : If A Canadian Citizen buys a newly issued share of stock in England, paying for his order with a check, which the British company deposits in its own Canadian bank account in Toronto this will be a accounted for in the balance of payments as Financial Account , Canadian Asset Export as this results in export of Canadian Asset.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

1a)Suppose Connie, a Canadian citizen, buys bonds issued by an automobile manufacturer in Sweden. Which of...

1a)Suppose Connie, a Canadian citizen, buys bonds issued by an automobile manufacturer in Sweden. Which of the following would her expenditure be? A. Canadian foreign direct investment that would increase Canadian net capital outflow B. Canadian foreign direct investment that would decrease Canadian net capital outflow C. Canadian foreign portfolio investment that would increase Canadian net capital outflow D. Canadian foreign portfolio investment that would decrease Canadian net capital outflow 1b) In the market for foreign-currency exchange in the open-economy...

An investor buys a share of stock for $40 at time t = 0, buys another...

An investor buys a share of stock for $40 at time t = 0, buys another share of the same stock for $50 at t = 1, and sells both shares for $60 each at t = 2. The stock paid a dividend of $1 per share at t = 1 and at t = 2. The periodic money weighted rate of return on the investment is closest to: 23.0% 22.2% 23.8%

An investor to buys Schlumberger Limited (SLB) share at $15 per share using $90,000 of his...

An investor to buys Schlumberger Limited (SLB) share at $15 per share using $90,000 of his own money and a margin loan. a. With an initial margin of 50% what is the maximum number of shares he can buy? b. If the maintenance margin is 20%, at what price will he get a margin call? And how much money would he need to add? c. If SLB stock price rises to $18, can the investor withdraw fund from the account?...

James buys a newly issued, $1,000 face value, 10-year maturity bond with a coupon rate of...

James buys a newly issued, $1,000 face value, 10-year maturity bond with a coupon rate of 12% (coupons are semi-annual) at $1,000. What is the current yield to maturity (YTM, nominal and semi-annually compounded) of this bond? A. 13.42% B. 10% C. 8% D. 12%

An investor buys a European call on a share for $5. The current stock price is...

An investor buys a European call on a share for $5. The current stock price is $102 and the strike price is $100. (a) Under what circumstances will the investor make a profit (have positive profit) on the expiration date? (b) Under what circumstances will the option be exercised on the expiration date? (c) Please draw a diagram showing how the investor’s profit depends on the stock price on the expiration date. To put it another, draw a diagram showing...

Consider a one-year futures contract for 1 share of a dividend paying stock. The current stock...

Consider a one-year futures contract for 1 share of a dividend paying stock. The current stock price is $50 and the risk-free interest rate is 10% p.a. It is also known that the stock will pay a $3 dividend at the end of year 1. The current settlement price for the futures contract is $51. Set up a strategy for an arbitrage profit. What are the initial and terminal cash flows from the strategy? Assume that investors can short-sell or...

Find the after-tax return to a corporation that buys a share ofpreferred stock at $47,...

Find the after-tax return to a corporation that buys a share of preferred stock at $47, sells it at year-end at $47, and receives a $3 year-end dividend. The firm is in the 30% tax bracket.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

Find the after-tax return to a corporation that buys a share of preferred stock at $52,...

Find the after-tax return to a corporation that buys a share of preferred stock at $52, sells it at year-end at $52, and receives a $7 year-end dividend. The firm is in the 30% tax bracket. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

An investor buys a stock for $40 per share and simultaneously sells a call option on...

An investor buys a stock for $40 per share and simultaneously sells a call option on the stock with an exercise price of $42 for a premium of $3 per share. Ignoring the dividends and transaction costs, what is the maximum profit the writer of this covered call can earn if the position is held to expiration?

Investor buys 200 shares of stock at $27.25 per share. Investor sells the stock after one...

Investor buys 200 shares of stock at $27.25 per share. Investor sells the stock after one year. 1. What is the dollar amount of gain and the percent of return if the stock is sold for $32.60 per share? How much does the yield percentage increase to if the stock received a per share dividend of $1.15 during the year? 2. What is the dollar amount of loss and percentage of return if the stock received a per share dividend...

Subjects