Questions from General Investment

Q: Describe the procedures and regulations associated with margin trading. Be sure

Describe the procedures and regulations associated with margin trading. Be sure to explain restricted accounts, the maintenance margin, and the margin call. Define the term debit balance, and describe...

Q: Below are the prices on the first and last day of the

Below are the prices on the first and last day of the year for Netflix common stock for several recent years. Netflix paid no dividends over this period. Calculate the return that an investor would ha...

Q: What is the primary motive for short selling? Describe the basic

What is the primary motive for short selling? Describe the basic short-sale procedure. Why must the short seller make an initial equity deposit?

Q: What relevance do margin requirements have in the short-selling process

What relevance do margin requirements have in the short-selling process? What would have to happen to experience a margin call on a short-sale transaction? What two actions could be used to remedy suc...

Q: Describe the key advantages and disadvantages of short selling. How are

Describe the key advantages and disadvantages of short selling. How are short sales used to earn speculative profits?

Q: Briefly describe the IPO process and the role of the investment bank

Briefly describe the IPO process and the role of the investment bank in underwriting a public offering. Differentiate among the terms public offering, rights offering, and private placement.

Q: For each of the items in the left-hand column,

For each of the items in the left-hand column, select the most appropriate item in the right-hand column. a. Prospectus b. Underwriting c. NYSE d. Nasdaq BX e. Listing requirements f. OTC 1. Trades un...

Q: Explain how the dealer market works. Be sure to mention market

Explain how the dealer market works. Be sure to mention market makers, bid and ask prices, the Nasdaq market, and the OTC market. What role does the dealer market play in initial public offerings (IPO...

Q: What are electronic communication networks?

What are electronic communication networks?

Q: Differentiate between a bull market and a bear market.

Differentiate between a bull market and a bear market.