influential tool. The course likewise attempts to develop the analytical ability of the students through various financial case presentations. IV. Course Objectives: At the end of the course, the students should be able to: 1. Discuss the concepts of Capital Market Theory. 2. Explain the role of Participants in capital markets 3. Know the legal and regulatory framework affecting the development Capital Markets 4. Analyze the impact and implication of Capital Market in the financial
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cts cipants; Seco ondary market for debt in nstruments Central Gov vernment Se ecurities: Bo onds Primary issu uance proces Participan in Govern ss; nts nment bond markets; Co onstituent SG accounts; GL Concept of P Primary dealers, Satellite dealers; Se e econdary markets for Gov vernment bonds; Settlem ment of trades in G G-Secs; Clea aring corpora ation; Negoti iated Dealing System; Liq g quidity Adjus stment Facilit ty (LAF). vernment Se ecurities:
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Assignment Package 1 Total Marks 60 Each short answer-question carries 3 marks (You can use more space than provided under short-answer questions) Q1 Describe the role of interest rates in economic decision making. How does expected inflation matter in people's borrowing and investment decisions(See Ch 1, pages 5-6) The real interest rate is the most important variable when it comes to determining their investment decisions. The expected inflation matter in people’s
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Finance Practice Exam Student: ____________________________________________________________ _______________ 1. According to Generally Accepted Accounting Principles, costs are: A. recorded as incurred. B. recorded when paid. C. matched with revenues. D. matched with production levels. E. expensed as management desires. 2. The financial ratio measured as total assets minus total equity, divided by total assets, is the: A. total debt ratio. B. equity multiplier. C. debt-equity ratio
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Stock appreciation rights. 16 Questions 1, 2, 3, 4, 5, 6, 7, 28 2, 3, 8, 9 1, 10, 11, 12, 13, 14, 15 17, 18, 24 19, 20, 21 Brief Exercises 1, 2, 3 4, 5 6, 7, 8 Exercises 1, 2, 3, 4, 5, 6, 7, 24, 25, 7, 8, 9, 28 10, 11, 12, 13, 14 1, 3, 4 Problems 2 Concepts for Analysis 1 1, 3 2, 4 4. 5. 15 12, 13, 14 22, 23, 27 6 5, 7 6. 7. 8. 9. 22, 23 15, 16 24, 25 10, 11 9, 15 28 15, 16, 17, 18, 21 5, 6, 7, 8, 9 5, 7 5, 6, 7 19, 20, 21, 22, 23, 24, 26, 27, 28 27 29, 30 7, 8, 9 10. *11
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Phase 5 IP Vanilla Stocks and Bonds Part 1 Bonds It has been established that it is crucial to be able to properly value a bond for finance. Two companies have been chosen to represent this action for this document Apple Inc. as well as IBM which are both in the technology sector and have long term debt, have bonds and also stocks available for sale. We are going to determine the length until maturity, the yield to maturity and then also the price of the bond today. While keeping this information
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overvalued shares. In case of investment to the undervalued shares, with thorough research and sharp evaluation, hedge funds buy huge amount of undervalued bonds from a company and wait until the price of the bonds goes up. When they figure out the highest increase rate of the bonds’ price, hedge funds, at the appropriate moment, sell all the bonds, thereby creating profits from the margins. This is the basic way hedge funds earn profits when they buy the undervalued
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Sample Level I Multiple Choice Questions 1. Sammy Sneadle, CFA, is the founder and portfolio manager of the Everglades Fund. In its first year the fund generated a return of 30 percent. Building on the fund’s performance, Sneadle created new marketing materials that showed the fund’s gross 1year return as well as the 3 and 5-year returns which he calculated by using back-tested performance information. As the marketing material is used only for presentations to institutional clients, Sneadle does
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notes and homeworks. It is merely a guide of the material covered and is not intended to include answers to exam questions. Exam 1: Chapters 1-7 Terminology & Concepts • See lecture slides and homework • Financial system functions and goals • Types of assets, physical, financial, … • Debt, money market, notes, bond, government debt, sovereign debt • Types of US government debt, mortgage backed securities • Equities, common, preferred, warrants • Pooled investment
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Chapter 4 Answers to Concept Review Questions 1. Managers need to understand how bonds and stocks are priced because (1) firms regularly issue stocks and bonds to raise money for investment (2) understanding how securities are priced is helpful when conducting an acquisition or a divestiture, (3) the stock price is an objective signal of how managers are performing, and (4) finance theory teaches that the goal of the manager should be to maximize the firm’s stock price. 5. The coupon rate
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