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- Which of the following statements is false? A. Mutual funds are pool investor funds to purchase financial instruments and thus reduce risks through diversification. B. Initial public offering (IPO) occurs when firm issues stock in the public market for the first time. C. The difference between current assets and non-current assets equals to working capital. D. Owner’s equity is the residual interest in assets that remains after subtracting an entity’s liabilities.What is the difference between primary and secondary markets? 1. Primary markets help in capital formation, while secondary capital provides liquidity to the investor 2. Initial public offerings are undertaken in both primary and secondary markets 3. Stock exchanges are an example of secondary markets Select the correct answer using the codes given below:which reporting categories are used to account for equity investments when the investor lacks the ability to significantly influence the operations of the investee?
- Which of the below statements is false for equity? A. Limited liability B.Residual claim on firm value C.Payouts to equity holders must be made before interest payments D.Voting Rights1. What is the differences between restricted and unrestricted investment account? (A) Right to commingle funds (B) Right to share profits (C) Right to guarantee returns (D) Right to additional equity sharesWhich of the following is a constrain for the investors? a. The mentality tontake the high risk b. Tax exemption on security trading c. Getting high income d. Liquidity needs
- Under IFRS No. 9, which reporting categories are used to account for equity investments when the investor lacksthe ability to significantly influence the operations of the investee?Which of the following statements are true Select one: a. All the options b. Capital structure depends on the conditions of the market c. Debt is also called as bond d. Preference shareholders are given preference at the time of liquidation e. The capital structure mix does not influence the total earnings of the firm.When a company decides to issue capital on the stock market what is the process called? (a) An Initial Public Offering (b) A Rights Issue (c) A Bond Issue (d) An Investment Trust
