Financial Markets and Institutions - kelvin777 - 78367

Request Posted by
Boss

Boss

Rating : No Rating
Earned: $0
Request Detail
Price: $10
  • From: Business, Finance
  • Due on: Fri 19 Feb, 2016 (06:00pm)
  • Asked on: Tue 16 Feb, 2016
  • Due date has passed, but you can still Post Solution.
Description
  • Question 1:
    • Proficient-level: "Classify the following transactions as taking place in the primary or secondary markets:
      • IBM issues $200 million of new common stock.
      • The New Company issues $50 million of common stock in an IPO.
      • IBM sells $5 million of GM preferred stock from its marketable securities portfolio.
      • The Magellan Fund buys $100 million of previously issued IBM bonds.
      • Prudential Insurance Co. sells $10 million of GM common stock" (Cornett, Adair, & Nofsinger, 2016, p. 154).
    • Distinguished-level: Provide five correct responses.
  • Question 2:
    • Proficient-level: "Classify the following financial instruments as money market securities or capital market securities:
      • Federal Funds.
      • Common Stock.
      • Corporate Bonds.
      • Mortgages.
      • Negotiable Certificates of Deposit.
      • U.S. Treasury Bills.
      • U.S. Treasury Notes.
      • U.S. Treasury Bonds.
      • State and Government Bonds" (Cornett, Adair, & Nofsinger, 2016, p. 154).
    • Distinguished-level: Provide nine correct responses.
  • Question 3:
    • Proficient-level: "What are the different types of financial institutions? Include a description of the main services offered by each" (Cornett, Adair, & Nofsinger, 2016, p. 154).
    • Distinguished-level: Provide a definition of the term, liquidity.
  • Question 4:
    • Proficient-level: "List and provide the definitions of the six factors that determine the nominal interest rate on a security" (Cornett, Adair, & Nofsinger, 2016, p. 154).
    • Distinguished-level: Identify the two factors common to all financial securities.
  • Question 5:
    • Proficient-level: Define the concept, term structure of interest rates. List and describe the three theories explaining the shape of the term structure of interest rates.
    • Distinguished-level: Identify the slope of the most common yield curve for a U.S. Treasury security.

 

Question#1: IBM issuing $200 million of new common stock is an example of a transaction in the Primary Market.

Question#2:Federal Funds is financial instrument classified as a Money Market security.

Question#3:Make sure you respond to each of the 7 different types of financial institutions reviewed in Table 6.3 of the M: Finance text.

1 Solution for Financial Markets and Institutions - kelvin777
Title Price Category solution By purchased  
Financial Markets and Institutions
$12.00 Business, Finance kelvin777 1 time(s)
Please Login or Register to Submit the Solution for the Request