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What is the difference between securities and gilt-edge securities?
Gilt-edge securities are those considered the safest investments. If they were stocks, they'd be called Blue Chips.
What is the difference between money market and capital market?
The main difference between money market and capital market is the duration of the securities traded. Money market deals with short-term debt securities, usually with maturities of one year or less, while capital market deals with long-term securities like stocks and bonds with maturities exceeding one year.
What is the difference between stocks and securities?
Stocks are a type of security that represents ownership in a company, while securities are a broader category that includes various financial instruments like stocks, bonds, and derivatives.
What are the key differences between the capital market and the money market?
The key difference between the capital market and the money market is the duration of the securities traded. The capital market deals with long-term securities like stocks and bonds, while the money market deals with short-term securities like treasury bills and commercial paper.
What is the difference between margin and collateral in terms of securities trading?
In securities trading, margin is the amount of money borrowed from a broker to buy securities, while collateral is the assets or funds used to secure the loan. Margin involves borrowing money to invest, while collateral is the security provided to ensure the loan is repaid.
What is difference between marketable title and insurable title?
What is difference between marketable title and insurable title?
What is the difference between operating revenue and non operating revenue?
Operating revenue is that revenue which is earned by basic operating activity of business while non operating profit is earned from other activities like purchases of marketable securities etc.
What is the difference between securities and gilt-edge securities?
Gilt-edge securities are those considered the safest investments. If they were stocks, they'd be called Blue Chips.
What is the difference between Cash and cash equivalents and Cash provided by operating activities?
Difference between cash and cash equivalent is that cash equivalent is not cash like other cash but it is so liquid that it can be converted to cash immediately when required like marketable securities while cash provided from operating activities means cash generated by selling goods to customers.
What is the difference between marketable surplus and marketed surplus?
The principal difference is time perspective: marketable surplus is produce that a farmer currently has on hand to take to market to earn a profit, while marketed surplus is what she has already taken to market to earn a profit.
What is the difference between cheque and voucher?
Cheque is both securities and payment instrument. Voucher is only securities. From securities point of view they are the same and have the same meaning. Cheque has larger scope.
Difference between securities exchange vs OTC market?
There are two primary differences between securities exchange and OTC. They are that OTC does not have a physical place and they seldom affect stock prices.
In the management of cash and marketable securities why should the primary concern be for safety AND liquidity rather than profit maximization?
the firm may hold excess funds in anticipation of cash outlay.when funds are being held for other than immediate transaction purposes, they should be converted from cash into interest-earning marketable securities which should be of highest investment grade usually consist of treasury bills, commercial paper, certification of time deposits from commercial banks realistically, management of cash and marketable securities cannot be separated. management of one implies management of other reasons for holding marketable securities there are several reasons for holding marketable securities such as 1. they serve as a substitute for cash balances many firms prefer to hold marketable securities as a substitute for transaction balances, precautionary balances, for speculative balances of for all three. in most cases the securities are held primarily for precautionary purposes or as a guard against a possible shortage of bank credit. 2. they held as a temporary investment where a return is earned while funds are temporarily idle. 3. they are built up to meet known financial requirements such as tax payments, maturing bond issue and so on. factors influencing the choice of marketable securities among the factors that will influence the choice of marketable securities 1. risk such as a. default risk. the risk that the issuer of the security can not pay the principal or interest at due dates. b. interest rate risk. the risk of declines in market values of the security due to rising interest rate c. inflation rate. the risk that inflation will reduce the real value of the investment. in periods of rising prices, inflation risk is lower on investments whose returns tend to rise with inflation than on investment whose return are fixed. 2. maturity MARKETABLE SECURITIES held should mature or can be sold at the same time cost is required. 3. yield or returns on securities. generally, the higher a security's risk the higher its required return. corporate investors, like other investors must make a trade-off between risk and return when choosing marketable securities. because these securities are generally held either for specific known need or for use in emergencies, the portfolio should consist of highly liquid short-term securities issued by the government or very strong corporations. treasurers should not sacrifice safety for higher rates of return. 4. Marketability (liquidity) risk this refers to the risk that securities cannot be sold at close to the quoted market price and is closely associated with liquidity risk.
Difference between the bid price and offer price?
The ''bid price'' is the price at which an investor can sell the securities he/she holds. The ''offer price is the price at which an investor can buy securities.
What is the difference between money market and capital market?
The main difference between money market and capital market is the duration of the securities traded. Money market deals with short-term debt securities, usually with maturities of one year or less, while capital market deals with long-term securities like stocks and bonds with maturities exceeding one year.
What is the difference between stocks and securities?
Stocks are a type of security that represents ownership in a company, while securities are a broader category that includes various financial instruments like stocks, bonds, and derivatives.
What is brokers and securities dealers?
Brokers and securities dealers are key participants in financial markets. Brokers act as intermediaries who facilitate transactions between buyers and sellers of securities, earning a commission for their services. In contrast, securities dealers buy and sell securities for their own accounts, profiting from the difference between the buying and selling prices. Both play crucial roles in ensuring liquidity and efficiency in the trading of financial instruments.
