Assignment number 1 Respond to the selected question giving real-world examples to support all your answers. Comment on the differences between the NYSE and the NASDAQ.Assignment number 1

Respond to the selected question giving real-world examples to support all your answers.

Comment on the differences between the NYSE and the NASDAQ. Does it matter to you, as an investor, where a particular stock is listed? Why or why not? 

What is the difference between the primary and secondary markets? How are the two markets related? 

What roles do primary and secondary markets play in capital formation and allocation? For optimum allocation of resources, are both equivalent or is one better than the other? 

Most mutual funds set out their objectives and investors should check that these objectives align with their own investment objectives. Which mutual fund is most suitable for you in terms of the alignment of objectives? 

Write your answers to the question in approximately 600 words. All written assignments and responses should follow APA rules for attributing sources.

 

 

Assignment number 2

 

11.An open-end fund has a net asset value of $10.70 per share. It is sold with a front-end load of 6%. What is the offering price?

 12: If the offering price of an open-end fund is $12.30 per share and the fund is sold with a front-end load of 5%, what is its net asset value?

 

14: Reconsider the Fingroup Fund in the previous problem. If during the year the portfolio manager sells all of the holdings of stock D and replaces it with 200,000 shares of stock E at $50 per share and 200,000 shares of stock F at $25 per share, what is the portfolio turnover rate?

 

10. 

Suppose you short sell 100 shares of IBM, now selling at $120 per share.

a. What is your maximum possible loss? 

b. What happens to the maximum loss if you simultaneously place a stop-buy order at $128? 

 

12 : DRK, Inc., has just sold 100,000 shares in an initial public offering. The underwriter’s explicit fees were $60,000. The offering price for the shares was $40, but immediately upon issue, the share price jumped to $44.

a. What is your best guess as to the total cost to DRK of the equity issue? 

b. Is the entire cost of the underwriting a source of profit to the underwriters? 

 

13: Dée Trader opens a brokerage account, and purchases 300 shares of Internet Dreams at $40 per share. She borrows $4,000 from her broker to help pay for the purchase. The interest rate on the loan is 8%.

a. What is the margin in Dée’s account when she first purchases the stock? 

b. If the share price falls to $30 per share by the end of the year, what is the remaining margin in her account? If the maintenance margin requirement is 30%, will she receive a margin call? 

c. What is the rate of return on her investment? 

 

 

 

 

 

The due in Sunday 3/11/2012  time 8:00 dallas tx time