Very Short Question Answer 1. List out the pros and cons of stock ownership. The pros or advantages of stock ownership are as follows: It offers substantial return opportunities. It is easily marketable. The market information on common stock is easily accessible. Common stock investment requires lower investment outlay. The cons or disadvantages of stock […]
Chapter 3: Investment Information and Securities Transactions
Very Short Question Answer 1. Differentiate the price – weighted index from the value – weighted index. Price weighted index is calculated by assigning weights in an index in proportion to the stock price of the underlying corporation. It is given by total of the market prices of all stocks in the sample divided by […]
Chapter 2: Markets and Transactions
Very Short Question Answer 1. State the roles of an investment banker. Investment bankers play .a number of roles in the primary market. One of the primary roles of an investment banker is to work as an intermediary between issuing corporations and investors through initial public offerings (IPOs). Similarly, they provide underwriting services for new […]
Chapter 1: Investment Environment
Very Short Question Answer 1. List out major characteristics of an investment. The most common characteristics of investment are as follows: Investment is undertaken with the expectation of earning a rate of return. Investment is the allocation of current saving with the expectation of more wealth for consumption in the future. Every investment involves risk […]