Homework Answers
Point b is correct because bid price is always less than the ask price. Bidprice is the price at which the the bond dealer buys the bond. Ask price is the price at which bond dealer sells the bond.
point e is correct. Bid Ask spread is the difference between bid and ask price. A broker usually earns from bid ask spread and commission or brokerage.
point f is correct. A broker always charges some percentage of commssion from dealers . Broker basically works as an agent of bond dealers.
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14. Which statement is true about bond dealers? (May be more than one) a. Bond dealers...
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5. The stock market A stock market isa market for trading a company's stocks and derivatives....
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4.Which one of the following statements about the approach to bond pricing is NOT true? Select...
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a. 2.04 b. 2.14 c. 2.26 d. 2.38 e. 2.49 In class Portion True/False (True-A, False=B)...
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Use the following exchange quotes to help answer problems 18-19 NYSE NASDAG Bid Bid Ask 150.13...
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Answer with True or False only for each of the questions. 1) Ignoring the length of maturity all ...
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e the following exchange quotes to help answer problems 18-19. NYSE NASDAQ Bid Ask Bid Ask...
e the following exchange quotes to help answer problems 18-19. NYSE NASDAQ Bid Ask Bid Ask CompanyX CompanyY $ 149.55 150.45 149.87 150.13 y YS 127.88 S 128.12 127.70 S 128.30 18. Currently you have $120.00 in cash and 1000 shares of Stock Y in your brokerage account. You plan to sell your 1000 shares of Stock Y and use the proceeds to purchase as many shares of Stock X as possible. Assume you cannot borrow or buy partial shares...
Use the following exchange quotes to help answer problems 18-19. NYSE NASDAQ Bid Ask Bid Ask...
Use the following exchange quotes to help answer problems 18-19. NYSE NASDAQ Bid Ask Bid Ask $149.55$150.45$149.87$ 150.13 $127.88$128.12127.70 S 128.30 CompanyY 18. Currently you have $120.00 in cash and 1000 shares of Stock Y in your brokerage account. You plan to sell your 1000 shares of Stock Y and use the proceeds to purchase as many shares of Stock X as possible. Assume you cannot borrow or buy partial shares of stock; you will also buy or sell at...
Primary dealers none of the listed answers are correct are small banks in the primary stage...
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17. Which is true about Treasury notes and bonds? (May be more than one) a. They...
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5. The stock market A stock market isa market for trading a company's stocks and derivatives. In a dealer market, some dealers hold a oertain inventory of specific securities and create a liquid market by purchasing and selling their inventories. These dealers make a market and are thus called market makers. Agents in the market bring investors to the dealers through a network of terminals and electronic systems. Where do dealer profits come from in a dealer market? O Dividend...
a. 2.04 b. 2.14 c. 2.26 d. 2.38 e. 2.49 In class Portion True/False (True-A, False=B) 13. A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capital. A bank that takes in demand deposits and then uses that money to make long-term mortgage loans is one example of a financial intermediary. 14. Sell side analysts work for investment consulting firms. 15. In a market order you can specify the...
Use the following exchange quotes to help answer problems 18-19 NYSE NASDAG Bid Bid Ask 150.13 Company Y 18. Currently you have $120.00 in cash and 1000 shares of Stock Y in your brokerage account. You plan to sell your 1000 shares of Stock Y and use the proceeds to purchase as many shares of Stock X as possible. Assume you cannot borrow or buy partial shares of stock; you will also buy or sell at the best price offered....
e the following exchange quotes to help answer problems 18-19. NYSE NASDAQ Bid Ask Bid Ask CompanyX CompanyY $ 149.55 150.45 149.87 150.13 y YS 127.88 S 128.12 127.70 S 128.30 18. Currently you have $120.00 in cash and 1000 shares of Stock Y in your brokerage account. You plan to sell your 1000 shares of Stock Y and use the proceeds to purchase as many shares of Stock X as possible. Assume you cannot borrow or buy partial shares...
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