What are financial securities

Assignment Help Finance Basics

Reference no: EM131937451

Question: Assume that you recently graduated and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm's clients is Michelle Dellatorre, a professional tennis player who has just come to the United States from Chile. Dellatorre is a highly ranked tennis player who would like to start a company to produce and market apparel that she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. Dellatorre is also very bright, and, therefore, she would like to understand, in general terms, what will happen to her money. Your boss has developed the following set of questions which you must ask and answer to explain the U.S. financial system to Dellatorre.

a. Who are the providers (savers) and users (borrowers) of capital? How is capital transferred between savers and borrowers?

b. What do we call the price that a borrower must pay for debt capital? What is the price of equity capital? What are the four most fundamental factors that affect the cost of money, or the general level of interest rates, in the economy?

c. What are some economic conditions that affect the cost of money?

d. What are financial securities? Describe some financial instruments.

e. List some financial institutions.

f. What are some different types of markets?

Reference no: EM131937451

Questions Cloud

Enter the annual equivalent worth of machine : Enter the annual equivalent worth of the machine that is the best alternative if the interest rate is 8.5%. If neither machine is acceptable, enter 0.

Discuss the problem of risky portfolio : Assume that you manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 34%. The T-bill rate is 8%.

Write a discussion paper on project management : Conduct a search of Liberty University's Online Library resources to find 3 peer-reviewed articles that are no more than 3 years old and closely.

What is real rate of return for machine : The general inflation rate is 3% and will impact the annual revenue, annual expenses and salvage value. What is the real rate of return for machine?

What are financial securities : What do we call the price that a borrower must pay for debt capital? What is the price of equity capital? What are the four most fundamental factors.

Explain the some of the ethical issues that nike is facing : From Nike's standpoint, is this a fair assessment of their ethical standards? Explain the some of the ethical issues that Nike is facing in the case.

Discuss the use of javascript in the context of html : Discuss the use of JavaScript in the context of HTML. Based on CAT 1, style the output of your CAT 1 as much as possible using external CSS only.

Spent on purchasing the new technology : What is the maximum amount that should be spent on purchasing the new technology?"

Convert the cost of installing solar panel to annual cost : how many square feet of solar panels should be installed? You should convert the cost of installing the solar panel to an annual cost."

User Account

All Pages