Part 4 Flashcards
In finance, which is the market where new securities are bought and sold for the first time?
Primary Market
If an investor were to sell 100 shares of Microsoft stock to another investor in the securities market, this would be referred to as what type of transaction?
a) Primary market transaction
b) Secondary market transaction
c) Money market transaction
d) Capital market transaction
b) Secondary market transaction
The concept of Financial management is: A) Maximizing profit B) All activities of obtaining and effectively using financial resources for company operations C) Organization of funds D) Effective Management of the company
B) All activities of obtaining and effectively using financial resources for company operations
Finance is very essential for the smooth running of the business. Hence it is called the …………. of the business
Lifeblood and nerve centre
Any decision that affects the finances of a business is called a ……………….
Corporate finance decision
Everything that a business does fits under the category of corporate finance. True/false
True
Assessing the performance of employees of a company comes under corporate finance. True/false
True
Corporate finance applies only to companies. True/false.
False. Corporate includes any business. Financial decisions are taken by all businesses.
Price fixation of a product comes under the purview of corporate finance. True/False
True. Marketing comes under corporate finance
Deciding the various strategies to prevent new competitors to easily enter the market involves a corporate finance decision. True/false
True. Its a corporate strategy involving the use of money.
What kind of returns do investors expect?
Interest/Dividend and Appreciation in the value of their securities.
A marketplace that provides an avenue for the sale and purchase of financial securities.
financial market
A market to debt funds
Bond Market
If Raju wants to trade in crude oil, which financial market will he trade?
Commodity market
Name any 3 factors that affect the working of the financial markets.
Inflation, War, Political environment, economic growth, interest rates, investor sentiment, company’s growth & performance, exchange rates of currencies.
