Name the benefits derived from the existence of stock exchanges
What will be an ideal response?
Providing a continuous market: it may be the most important function of an organized security exchange. A
continuous market provides a series of continuous security prices.
Establishing and publicizing fair security prices: An organized exchange permits security prices to be set by
competitive forces. The bidding process flows from the supply and demand underlying each security. This means the
specific price of a security is determined in the manner of an auction. In addition, the security prices determined at
each exchange are widely publicized.
Helping business raise new capital: Because a continuous secondary market exists, it is easier for firms to float, or issue,
new security offerings at competitively determined prices.
You might also like to view...
Bisou Inc. made a $48,200 contribution to charity this year. Only $39,000 of the contribution was deductible. Bisou can carry the $9,200 nondeductible contribution back three years and forward five years.
Answer the following statement true (T) or false (F)
Which of the following is not a primary trait of information?
A. Quantity B. Governance C. Type D. Timeliness
In July, Meers Corporation sold 3,700 units of its only product. Its total sales were $107,300, its total variable expenses were $66,600, and its total fixed expenses were $34,800.Required:a. Construct the company's contribution format income statement for July.b. Redo the company's contribution format income statement assuming that the company sells 3,400 units.
What will be an ideal response?
In 1998, Congress passed legislation concerning shifting the burden of proof to the IRS. The taxpayer must introduce "credible evidence" to shift the burden of proof to the IRS. What constitutes "credible evidence?"
What will be an ideal response?