0
The belief that investors require a higher return to entice them into holding long-term securities is the viewpoint of the?
Wiki User
∙ 13y ago
Market credit crunch theory
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
What is the difference between a holding company and an investment company?
A holding company is a company that owns the outstanding stock of other companies, giving it control over those companies' operations and management. An investment company, on the other hand, is a company that pools money from investors and uses that money to buy securities, such as stocks, bonds, and real estate. The primary business of an investment company is to invest in these securities and manage them to generate income and capital appreciation for the investors. In summary, a holding company acquires and controls other companies, while an investment company pools money from investors to invest in securities. My Recommendation: 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟕𝟐𝟓𝟕𝟔/𝐝𝐡𝐫𝐮𝐯𝐫𝐚𝐣_𝟔𝟎𝟗𝟏/
What services do small business investment companies provide?
Investment companies are typically involved in three activities: investing, reinvesting, or trading securities; issuing face amount certificates of the installment type; and holding investment securities
Who was the lead underwriter on the Dell IPO?
The lead underwriter on the Dell IPO was Goldman Such."It is a bank holding company that does business in investment banking, trading, securities and other financial areas.
What is a high yield bond fund?
High yield bond ( Junk bonds) funds own the debt of companies with less than stellar credit. The yield is higher to compensate the the increased risk that the fund and its investors are more likely to lose money as compared to a bond fund holding higher rated debt.
What is a Rule 144A High-Yield Offering?
A high-yield offering refers to an bond issuance that pays the bond purchasers a relatively high rate of return due to the correspondingly high level of risk associated with the issuance. The rate of return acceptable to purchasers depends on the perceived risk of default by the issuer, as traditionally determined by major credit ratings agencies. The higher the risk that an issuer will default on its obligations, the higher the yield that the issuer will have to pay to purchasers of bonds (lenders)to borrow money. Bonds sold in interstate commerce are subject to the Securities Act of 1933 and as such must be registered with the SEC or exempt from registration to comply with federal regulatory requirements. Rule 144A is an exemption from registration that allows securities (ex., bonds) to be offered or sold only to qualified institutional buyers (QIBs) and only if the securities were not, when issued, listed on an exchange or quoted in an over-the-counter system. Securities offered to Rule 144A are "restricted securities" subject to holding period, amount and manner sales restrictions. So, a Rule 144A high-yield offering is an offering of high-yield debt by an issuer according to the requirements of the Rule 144A exemption.
What is the difference between a holding company and an investment company?
A holding company is a company that owns the outstanding stock of other companies, giving it control over those companies' operations and management. An investment company, on the other hand, is a company that pools money from investors and uses that money to buy securities, such as stocks, bonds, and real estate. The primary business of an investment company is to invest in these securities and manage them to generate income and capital appreciation for the investors. In summary, a holding company acquires and controls other companies, while an investment company pools money from investors to invest in securities. My Recommendation: 𝐡𝐭𝐭𝐩𝐬://𝐰𝐰𝐰.𝐝𝐢𝐠𝐢𝐬𝐭𝐨𝐫𝐞𝟐𝟒.𝐜𝐨𝐦/𝐫𝐞𝐝𝐢𝐫/𝟑𝟕𝟐𝟓𝟕𝟔/𝐝𝐡𝐫𝐮𝐯𝐫𝐚𝐣_𝟔𝟎𝟗𝟏/
Unrealized holding gains or losses which are recognized in income are from securities classified as?
Trading securities
If you credit unrealized holding gain or loss what do you debit?
Marketable Securities
What is the role of custodian bank?
Under the Uniform Commercial Code and modern stock exchange systems, stock is not issued in the traditional manner, but rather is held by a series of proxies. Retail investors hold "beneficial securities entitlements" which are matched to stock held in the name of DTC nominee Cede Co on the books of the underlying securities issuer. So if Bob is a retail investor in GOOG, Google sees Bob's shares in Google's stock register under street name. Google has no idea that Bob holds Google stock. Bob's brokerage's custodian bank is responsible for matching the rights in Google held by the stock exchange up to the rights of Bob as beneficial owner. The custodian must relay to Bob the proxy papers for stockholder meetings and dividends and so on as Bob demands. A custodian bank functions as a securities intermediary in the holding chain for securities held in street name. It is a type of proxy that is expedient for stock brokers or large investors. After clients negotiate trades of securities, the clients' custodian handles the actual settlement of securities transactions by effecting changes of securities ownership in the stock exchange securities registers run by the DTC.
Debt securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses and are included as other comprehensive income and as a separate component of stockh?
A. Held-to-maturity debt securities
How individual investors are affected by institutional investors?
Institutional investors have more money and access to company managements. So they can buy early and sell early. Individual investors usually buy only after the institutions have jacked up the price. Then they are left holding high priced stocks when the institutions move out.
Can you sue a stock broker for with holding stock that is to go to an estate?
Report the stockbroker to the SEC (securities and exchange commission)
How do capital market securities pass from the issuer to the public?
A public offer is made and they move from the private issuer to the public holding.
What is the function of bursa Malaysia?
Bursa Malaysia is the main stock exchange in Malaysia, where public listed companies list their securities for trading. It provides a platform for companies to raise capital by issuing shares and for investors to buy and sell these securities. Bursa Malaysia also plays a crucial role in regulating and supervising the securities market to ensure fair trading practices and investor protection.
What services do small business investment companies provide?
Investment companies are typically involved in three activities: investing, reinvesting, or trading securities; issuing face amount certificates of the installment type; and holding investment securities
What is expectation premium?
Expectation premium refers to the additional return that investors expect to receive for taking on a certain level of risk. It is essentially the compensation investors demand for holding an asset that may be subject to various uncertainties, such as market fluctuations or economic conditions. The expectation premium is a key consideration for investors when assessing the potential returns from an investment.
What are different behavior types of investors?
Some common behavior types of investors include risk-averse, risk-tolerant, emotional, rational, short-term focused, and long-term oriented. Risk-averse investors typically avoid high-risk investments, while risk-tolerant investors are more open to taking risks. Emotional investors may make decisions based on feelings rather than facts, while rational investors are more likely to rely on data and analysis. Short-term focused investors seek quick profits, whereas long-term oriented investors are more interested in holding investments for extended periods.
