Bid ask spread - Study guides, Class notes & Summaries

FIN 357 Exam 1 With 100% Correct And Verified Answers 2024 shareholders' Ask Price - Correct Answer-Price which market maker or specialist willing to sell security Bid Price - Correct Answer-Price which market maker of specialist willing to buy security Bid Ask Spread - Correct Answer-Amount which ask price exceeds big price C Corporation - Correct Answer-No restriction on who owns shares or number of shareholders, subject to double taxation CEO - Correct Answer-Person in charge...

WGU C214 Possible Test Exam Questions with Authentic Marking Scheme 2024 Markets are where prices are determined (T/F) - correct answer True The NYSE specialist has an objective to provide liquidity to the market. (T/F) - correct answer True false. The NYSE specialist will charge a higher price to sellers of the stock and a lower price to the buyer of the stock - correct answer False The bid-ask spread is compensation to the specialist for providing liquidity to the market. (T/F)...

1. to manage risk 2. to speculate 3. to reduce transaction cost 4. to minimize taxes/avoid regulatory issues - Answer- 4 reasons for using derivatives bid price - Answer- the price at which market-makers will buy and end-users will sell ask/offer price - Answer- the price at which market-makers will sell and end-users will buy bid-ask spread - Answer- ask price - bid price round-trip transaction cost - Answer- difference between what you pay and what you receive from a sale using ...

CFA Level 1 - 101 Must Knows 368 Questions with Verified Answers Addition Rule of Probability - CORRECT ANSWER ADDITION: P(A or B) = P(A) + P(B) - P(AB) Roy's Safety First Criterion - CORRECT ANSWER Safety First Ratio = (E(R) - Rₜ) / σ Larger ratio is better If (Rₜ) is risk free rate, then it becomes Sharpe Ratio Sharpe Ratio - CORRECT ANSWER Sharpe Ratio = (E(R) - RFR) / σ Larger ratio is better If (Rt) is higher than RFR, then it becomes Safety First Ratio Centra...

Accounting - The system of recording, reporting, and summarizing past financial information and transactions. Accounts Receivable Turnover (AR Turnover) - An activity ratio found by credit sales divided by accounts receivable. Activity Ratios - A category of ratios that measure how well a company uses its assets to generate sales or cash, showing the firm's operational efficiency and profitability. Additional Funds Needed (AFN) - Another name for the discretionary financing needed or exte...

FINRA SIE Real Exam Questions with All Correct Answers Types of Issuers - CORRECT ANSWERS - FCBUS F oreign gov C orporations B anks U .S. Treasury and gov agencies S tate and local gov - raise capital by issuing securities EQUITY = used by corporations (represents ownership) DEBT = represent an issuer's promise to pay (notes and bonds) Broker-Dealer - CORRECT ANSWERS - Broker acts as a middle man between buyer and seller (no risk to the firm)...

SIE Mastery Exam Practice Questions With Accurate Answers. Which of the following investments typically carries significant liquidity risk? A) T-bills B) Limited partnership C) Listed equities D) Mutual funds - answerB) Limited partnership Limited partnerships are not freely transferable and have no established secondary market. With an LP, assume you will own it through the life of the program. All the others listed have active secondary markets and are very liquid. Diversifying a por...

Absolute return products are investment products viewed as having little or no return correlation with traditional assets, and have investment performance that is often analyzed on an absolute basis rather than relative to the performance of traditional investments. - ANSWER-absolute return products An absolute return standard means that returns are to be evaluated relative to zero, a fixed rate, or relative to the riskless rate, and therefore independently of performance in equity markets, ...

2 types Foreign exchange spreads correct answer: spreads quoted by dealer, and spread in interbank market spreads by dealer depends on correct answer: 1) spread in interbank market 2) size of transaction 3) relationship between dealer and client spread in interbank market depends on correct answer: 1)currencies involved 2) Time of day 3) market volatility spreads of forward exchange rate correct answer: 1) all above characters of spreads 2) maturity ( longer -> higher spread...

T1 Primary financial markets - the markets in which securities (stocks and bonds) are first issued. This is where the issuers (the firms) and the buyers (the investors) will engage in an exchange. T1 Syndicate - When a company wants to issue stock, bonds, or other publicly traded securities, it hires an * underwriter * to manage what is often a long and complex process. After determining the offering structure, the underwriter usually assembles what is called a syndicate to get help manage t...