Question

5. Reproduced is the diagram of two transactions we covered in class. Explain clearly the details of the transactions, how the deals were financed, and how were the funds received by the sellers invested.

Answer 1

Transaction 1

Here House hold 1 (Houses) will make a deal with House hold 2 and after the deal is finalized the house hold 1 will invest UTI trust and the investment will give them shares on the amount they invest.

Transaction 2

Eds Beds will go to Anne's Venns (Bank) and they will do a financial deal with them. After the deal is finalized the Investment will go-to Mega Bank and than Mortgage.