Answer 7
d. This is an example of a direct transfer of capital.
Explanation: Direct transfer of stocks or securities refers a to situation whereby a seller of securities or stocks sell them to the buyer direct without involving any financial institution. Under this, seller will directly deliver the security certificate to the buyer who will in turn pay the seller in cash or by check immediately.
Therefore, collecting check from your brother for the Microsoft stock and giving your brother the stock certificate is an example of a direct transfer of capital.
(D) sale of 10,000 shares of treasury stock by its issuing corporation to Miquel. Explanation: Primary market transaction: In the primary market transaction, when securities are introduced in the business organization it is first given to the public or we can say initial public offer. The business organization sell its securities in terms of stocks, bonds to the public for the first time
In the given question, the option D would be the most appropriate option and give an example of primary market transactions. Thus, all other options are incorrect.
e. As they are generally defined, money market transactions involve debt securities with maturities of less than one year. Explanation: Statement E, As they are generally defined, money market transactions involve debt securities with maturities of less than one year is true.
Statement A is not true. It is primary market transaction.
Statement B is not true. Individuals can also participate in derivatives market transactions.
Statement C is not true. The IPO market is a subset of the primary market.
Statement D is not true. It is a direct transfer of capital.
An example of primary market transaction occurs when there
is a presence of creation of securities in which there is an initial public
offering the occurs in a market n means for having to make the market to sell
for the first time as it is associated or showed in the public.
C) Capital market instruments include both long-term debt and common stocks.
Explanation: Capital market instruments include several types of financial instruments like stocks, bonds, US securities, foreign exchange, etc. Since these financial instruments are basically debt and equity instruments, they are called securities. So another term used to refer to capital markets is the securities market. Capital markets are divided into two main classifications: primary markets where recently issued securities are traded, and secondary markets where investors trade previously acquired securities.
D. Capital market instruments include both long-term debt and common stocks. Explanation: Capital market is financial market where long term instruments are traded. These instruments include bond, common stocks and debenture. With this background, statement in option D is correct. Option A is not correct because reverse is the case: investment banks raise large blocks of capital from investors while commercial banks specialize in lending money. Option B and E are not correct, too. Transaction under them are examples of a secondary market transaction. Option C is wrong, as well. NYSE has a physical location where trading activities happen. So option D is the only correct statement because capital market instruments are long-term debt and common stocks.
Corporate shareholders escape liability for the firms debts, but this factor may be offset by the tax disadvantages of the corporate form of organization Explanation:
D. Capital market instruments include both long-term debt and common stocks. Explanation: Capital market is financial market where long term instruments are traded. These instruments include bond, common stocks and debenture. With this background, statement in option D is correct. Option A is not correct because reverse is the case: investment banks raise large blocks of capital from investors while commercial banks specialize in lending money. Option B and E are not correct, too. Transaction under them are examples of a secondary market transaction. Option C is wrong, as well. NYSE has a physical location where trading activities happen. So option D is the only correct statement because capital market instruments are long-term debt and common stocks.
Option E Explanation: A direct transfer refers to theshift of funds from certain form or section of a tax deferred retirement savings plan to another. Direct payments are not deemed to be statutory dividends, and are therefore not taxed as profits or susceptible to premature payment charges. Now normally this form of transition happens digitally. In simple terms, cash loans exist when a company sells its shares in return for money specifically to the savers. There is no financial institution involved in this procedure.Small firms typically use direct transfers, so very less money is generated during this phase.
d. This is an example of a direct transfer of capital.
Explanation: Direct transfer of stocks or securities refers a to situation whereby a seller of securities or stocks sell them to the buyer direct without involving any financial institution. Under this, seller will directly deliver the security certificate to the buyer who will in turn pay the seller in cash or by check immediately.
Therefore, collecting check from your brother for the Microsoft stock and giving your brother the stock certificate is an example of a direct transfer of capital.
e. As they are generally defined, money market transactions involve debt securities with maturities of less than one year. Explanation: Statement E, As they are generally defined, money market transactions involve debt securities with maturities of less than one year is true.
Statement A is not true. It is primary market transaction.
Statement B is not true. Individuals can also participate in derivatives market transactions.
Statement C is not true. The IPO market is a subset of the primary market.
Statement D is not true. It is a direct transfer of capital.
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d. This is an example of a direct transfer of capital.
Explanation: Direct transfer of stocks or securities refers a to situation whereby a seller of securities or stocks sell them to the buyer direct without involving any financial institution. Under this, seller will directly deliver the security certificate to the buyer who will in turn pay the seller in cash or by check immediately.
Therefore, collecting check from your brother for the Microsoft stock and giving your brother the stock certificate is an example of a direct transfer of capital.
This post is last updated on hrtanswers.com at Date : 1st of September – 2022