A company purchases a building by signing a $200,000 10% interest bearing note due at the end of five years. at what amount should the building be recorded?

Answers

Answer 1

The amount the building should be recorded is the present value of the amount payable in 5 years which is $124,184.26

What is the present value of future payment?

The present value of the payment expected in 5 years is determined as using the present value formula of a single cash flow in respect of the building:

PV=FV/(1+r)^N

FV=year 5 payment=$200,000

r=interest rate=discount rate=10%

N=number of years before payment is due=5

PV=$200,000/(1+10%)^5

PV=$124,184.26

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Related Questions

which wheel settings change when you mount the subframe incorrectly in the transverse direction? Check all that apply
TOE
CAMBER
STEERING AXIS INCLINATION (SAI)
CASTER

Answers

The wheel settings that change when you mount the subframe incorrectly in the transverse direction is "CASTER" (Option D)

What is Caster?

Caster is the process of aligning a wheel with the direction of travel, which can be performed by caster displacement or caster angle. As with the front wheels of a shopping cart, caster displacement shifts the steering axis forward of the axis of wheel rotation. The steering axis is moved away from the vertical by the caster angle.

The caster angle, also known as the castor angle, is the angular displacement of the steering axis from the vertical axis of a steered wheel of a car, motorbike, bicycle, another vehicle, or watercraft as seen from the side.

Positive caster enhances the responsiveness of your vehicle while negotiating bends and the stability of your car when going at greater speeds. The sole disadvantage of a positive caster is that it increases the amount of effort required to steer your car.

Turning plates and a digital or bubble camber/caster gauge are the two most common methods for measuring caster angles. Measuring the upper and lower wishbone mounting points or the MacPherson strut angle.

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Which statement about credit and debit cards is NOT true? *
When you use a credit card, the money you spend comes out of your checking account immediately.
When you use a debit card, the money you spend comes out of your checking account
immediately.
Credit and debit cards can both be used to make purchases at most retailers.
You can use a credit card to spend more money than you have in your bank account.

Answers

Answer:

I believe that the the statement "you can use a credit card to spend more money than you have in your bank account" is false because a credit card takes out the money straight away, while a debit card sometimes waits to take out the money you used

Answer: D. It is harder for a thief to use your debit card.

Explanation:

cost flow assumptions follow the physical flow of goods for which of the following? a.weighted average b.lifo c.specific identification d.fifo

Answers

The correct option is c. Specific Identification is where cost flow assumptions follow the physical flow of goods .

The way or channel that costs flow through a company is referred to as the flow of costs. The flow of costs typically pertains to manufacturing businesses where accountants are required to quantify expenses associated with raw materials, work in progress, finished product inventory, and cost of goods. The term "flow of costs" refers to components in other operations that have a cost associated with them, including such labor and overhead, in addition to inventory. The evaluation of the raw materials in the manufacture is the first step in the flow of expenses. Next, the work-in-process inventory is where the cost flow is directed. In addition to any overhead expenses, the cost of the production's machinery and manpower is added.

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Marta is interviewing candidates for a position in the Human Resources department at her company. She is deciding who to interview by going through resumés and looking at the subject areas in which each candidate studied. Which four candidates would be the best choice for Marta to interview?

Answers

Answer:

C). Marisol, who studied communications and business

Explanation:

Marisol would be the best candidate to be interviewed for the position in the HR department as she has studies business and communications which is critical to ensure effective communication between the employee and the business. The HR professionals primarily function as the link between the two and help in maintaining healthy employee relations. They act as the leaders in the organization and with their efficient organization, decision-making, and management skills, they ensure the smooth functioning of the organization. Since Marisol has studied business and communications, she must possess these skills which would be the most suitable for the position. Hence, option C is the correct answer.

Answer:

B: Michelle, who studied communications and business

What does the stock market drive companies to do?

Answers

Answer:

It drives companies to push themselves to increase their market value, and make sure all the companies news is relevant and important.

Explanation:

The stock market is an online exchange where prices are put together and people make different trades. The stock market drives them to increase their earnings and ultimately the price per share of their stock.

The production cost in GHC per week of producing x computers is given by
\(c(x) = 4000 - 32x + 0. 08 {x}^{2} + 0. 00006 {x}^{3} \)
and the demand function for the computers is given by
\(p(x) = 250 + 0. 02x - 0. 001 {x}^{2} \)
What is marginal cost, marginal product, and marginal revenue. When
\(x = 200 \)
and
\(x = 400\)
what does theses numbers tells you about marginal cost, marginal product and marginal revenue​

Answers

When x = 200 and x = 400, you can calculate the values of marginal cost, marginal product, and marginal revenue at these specific production levels. These numbers will provide insights into the changes in cost, production, and revenue associated with increasing the quantity produced from 200 to 400 units.

Marginal cost represents the additional cost incurred by producing one more unit of output. It is calculated as the derivative of the cost function with respect to the quantity produced (x). In this case, the marginal cost can be obtained by taking the derivative of the cost function c(x).

Marginal product refers to the additional output produced by employing one more unit of input. It is calculated as the derivative of the production function with respect to the quantity produced (x).

However, the given problem does not provide a production function explicitly, so it is not possible to determine the marginal product.Marginal revenue represents the additional revenue generated by selling one more unit of output.

It is calculated as the derivative of the revenue function with respect to the quantity sold (x). In this case, the revenue function can be obtained by multiplying the price function p(x) by the quantity produced (x).

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Why should you understand what you can and cannot copyright?

Answers

Answer:

Copyright is important as it helps to protect the value of an author/academic/researchers work, by giving the originator of the work the ability to protect it from unlicensed or uncredited usage.

Explanation:

Answer:

So that therefore you wouldn't be fined of plagiarism of any kind.

Explanation:

Disadvantages of choosing a job that is extremely popular or in demand

Answers

The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.

What is a high demand job?

This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.

The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.

The number of qualified persons may become more than the job that is available for the people to do in the long run.

Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.

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What companies are currently experiencing supply chain issues or inflation?

Answers

Answer:

Amazon, Kellogs, Nike

Explanation:

HP is also a company being affected by the supply chain issues :)

A new school building was recently built in the area. The entire cost of the project was $20,000,000. The city has put the project on a 20-year loan with an APR of 2.7%. There are 21,000 families that will be responsible for making monthly payments towards the loan. Determine the total amount that each family should be required to pay each year to cover the cost of the new school building. Round your answer to the nearest cent, if necessary.

Answers

Each family should be required to pay approximately $25.71 per year to cover the cost of the new school building.

To determine the total amount that each family should be required to pay each year to cover the cost of the new school building, we can follow these steps:

Calculate the total loan amount.

The loan amount is the cost of the project, which is $20,000,000.

Calculate the annual interest payment.

The annual interest payment can be calculated using the formula:

Annual Interest Payment = Loan Amount * Annual Interest Rate

Annual Interest Rate = APR / 100

In this case, the annual interest rate is 2.7% or 0.027.

Annual Interest Payment = $20,000,000 * 0.027 = $540,000

Determine the number of families responsible for payments.

There are 21,000 families responsible for making monthly payments.

Calculate the total amount each family should pay each year.

Total Amount per Family = Annual Interest Payment / Number of Families

Total Amount per Family = $540,000 / 21,000

Rounding the result to the nearest cent, each family should be required to pay approximately $25.71 per year to cover the cost of the new school building.

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firms will only adopt more automated methods of production when

Answers

Answer when the argument gets too long

Explanation:

A scientist has samples of both nitrogen (N2) and hydrogen (H2). Both of these substances are odorless, colorless gases at room temperature. The scientist places the samples into a closed flask and heats the flask. A colorless gas that has a strong odor forms. Which of these best describes what happened?'

A.
A mixture formed when nitrogen and hydrogen combined.
B.
A pure substance that is chemically identical to both nitrogen and oxygen formed.
C.
A new compound formed when nitrogen and hydrogen chemically reacted.
D.
A new element formed when oxygen and nitrogen atoms turned into new kinds of atoms.

Answers

Answer: C.  A new compound formed when nitrogen and hydrogen chemically reacted.

Explanation:

Due to the temperature increase, the atoms of both Nitrogen and Hydrogen reacted chemically with one another and formed a new compound which was still colorless but now had a strong odor as well.

This new compound is known as Ammonia with the chemical composition NH₃. It is formed when Hydrogen and Nitrogen react chemically. Ammonia is a colorless gas with a sharp strong odor.

Over the past 4 years an investment returned 18%, −9%, −12%, and 15%. What is the standard deviation of returns?

Answers

The standard deviation of the given returns is approximately 13.3%.

To calculate the standard deviation of returns, you can follow these steps:

1. Calculate the average return (also known as the mean) by summing up all the returns and dividing by the number of returns:

  Average Return = (18% + (-9%) + (-12%) + 15%) / 4 = 3%

2. Calculate the deviation of each return from the average return. This is done by subtracting the average return from each individual return:

  Deviation = Return - Average Return

  For the given returns:

  Deviation1 = 18% - 3% = 15%

  Deviation2 = -9% - 3% = -12%

  Deviation3 = -12% - 3% = -15%

  Deviation4 = 15% - 3% = 12%

3. Square each deviation:

  Squared Deviation = Deviation^2

  Squared Deviation1 = 15%^2 = 225%

  Squared Deviation2 = (-12%)^2 = 144%

  Squared Deviation3 = (-15%)^2 = 225%

  Squared Deviation4 = 12%^2 = 144%

4. Calculate the average of the squared deviations (also known as the variance) by summing up all the squared deviations and dividing by the number of returns:

  Variance = (225% + 144% + 225% + 144%) / 4 = 177%

5. Finally, calculate the standard deviation by taking the square root of the variance:

  Standard Deviation = √(Variance) = √(177%) ≈ 13.3%

Therefore, the standard deviation of the given returns is approximately 13.3%.

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What are 20 things to do at home when I have nothing to do and have done all my online school?

Answers


1. Eat a carrot
2. Vomit because carrots are disgusting
3. Play video games DUHH
4. Don’t waste your time on brainly

Which of the following is NOT a potential "special cause" of process variation? A. a machine that needs to be repaired. B. an employee without proper training C. raw material that does not meet specifications. D. random causes What is the most commonly used measure of variation in statistics terminology? A. omega. B. proportion C. the mean D. sigma.

Answers

The answer to the first question is D. random causes

The answer to the second question is D. sigma

The answer to the first question is D. Random causes are not considered "special causes" of process variation because they are inherent and natural to any process and cannot be attributed to a specific source or reason such as those listed in options A, B, and C.

The answer to the second question is D. Sigma (σ) is the most commonly used measure of variation in statistics terminology. It represents the standard deviation of a population and is used to quantify how much the individual data points deviate from the mean of the distribution. The larger the value of sigma, the more spread out the data is and the greater the variability in the process. Sigma is particularly important in Six Sigma methodology, which aims to reduce process variation to improve quality and efficiency.

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_____ involves coordinating all planning efforts to create a consistent, coherent document

Answers

"Integrated Planning."  involves coordinating all planning efforts within an organization to create a consistent and coherent document or plan.

It aims to align various functional areas and departments, such as finance, marketing, operations, and human resources, to work together towards common goals and objectives. By integrating planning efforts, organizations can ensure that different plans are aligned and supportive of each other, avoid conflicting strategies, enhance communication and collaboration, and promote a holistic approach to decision-making.

Integrated planning facilitates a comprehensive view of the organization's direction, resource allocation, and performance evaluation.

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The Clifford Corporation has announced a rights offer to raise $25 million. The stock currently sells for $60 per share, and there are 2 million shares outstanding.

a. If the subscription price is set at $50 per share, how many shares must be sold? b. How many rights will it take to buy one share?

c. What is the ex-rights price (price after the rights are exercised)? d. What is the value of a right?

Answers

The Clifford Corporation has announced a rights offer to raise $25 million. The stock currently sells for $60 per share, and there are 2 million shares outstanding.

If the subscription price is set at $50 per share, how many shares must be sold?Rights Offer is one of the ways a company can raise equity capital from the existing shareholders. The company gives its existing shareholders an opportunity to purchase additional shares of the company at a price that is usually lower than the prevailing market price to attract them to invest further in the company.

The market value of the outstanding shares before the rights issue is:Market value = 2 million x $60 = $120 million.The number of new shares to be issued to raise $25 million = $25 million / $50 per share = 0.5 million shares. Hence, the total shares outstanding after the rights issue = 2 million + 0.5 million = 2.5 million shares.

The total market value of the company after the rights issue = 2.5 million x $60 = $150 million. The market value of the old shares after the rights issue is:

Market value of old shares = (2/2.5) x $150 million = $120 millionThe market value per old share = $120 million / 2 million = $60 per share.Number of shares that must be sold is 500,000 shares.b) How many rights will it take to buy one share?The shareholder must be given the right to purchase new shares in proportion to the number of shares that they already own.

In other words, the shareholders are given one right for each share that they currently hold. Therefore, to buy one share of the new issue, the shareholder needs to have two rights.c) What is the ex-rights price (price after the rights are exercised)? Ex-Rights Price refers to the value of a share after a rights offering has been executed. The total value of the company after the rights issue is $150 million, and the total number of shares after the rights issue is 2.5 million shares. Hence, the ex-rights price is $150 million/2.5 million = $60 per share.d) What is the value of a right?A right is the entitlement offered to the shareholder by the company to purchase a new share in proportion to the number of shares held by the shareholder.

In this case, the value of a right can be calculated as follows:Theoretical Value of the right = (60-50)/ (2+1) = $3.33 per right. Hence the value of a right is $3.33.

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Goods that consumers regard as luxuries generally have
A. an income elasticity equal to 1.
B. an income elasticity less than 1.
C. an income elasticity greater than 1.
D. a negative income elasticity

Answers

C. Goods that consumers regard as luxuries generally have an income elasticity greater than 1. Demand is considered elastic if the price elasticity of the demand is larger than 1.

The demand for the product is therefore susceptible to price increases. Demand and price elasticity below one is referred to be inelastic. After a price rise, the product's demand does not considerably alter. Demand for typical items has a positive income elasticity of demand, meaning that as income rises, so does the quantity desired. A thing is considered a necessity if the desire for it has a lower income elasticity of demand than 1. If the elasticity is one, then the demand response is exactly proportionate to the price change since the change in quantity requested is exactly equal to the change in price. 

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tools - machinery - and infrastructure are classified under the resource category of

Answers

Tools, machinery, and infrastructure fall under the resource category in various industries and sectors. They are essential assets that enable the production, development, and maintenance of goods and services.

Tools, machinery, and infrastructure are vital resources that support economic activities across different sectors. In manufacturing, tools and machinery encompass a wide range of equipment, from hand tools to complex industrial machines, used in production processes. They play a crucial role in enhancing efficiency, precision, and output levels. Infrastructure refers to the physical structures and systems necessary for the functioning of a society, including transportation networks, power grids, communication systems, and buildings.

It provides the framework for economic activities by facilitating the movement of goods, services, and people. Well-developed infrastructure enables businesses to operate smoothly, connect with markets, and reach customers efficiently. Overall, tools, machinery, and infrastructure are key resources that contribute to economic growth, productivity, and development in various industries.

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According to the external control view of leadership, which of the following factors would not be considered an external factor that might positively or negatively affect a firm's success?
A. economic downturns
B. governmental legislation
C. outbreak of war
D. company employee morale

Answers

According to the external control view of leadership, all of the options listed (A, B, C, and D) would be considered external factors that might positively or negatively affect a firm's success.

The external control view of leadership is a theoretical perspective that suggests that a leader's ability to control and influence their organization's success is limited by external factors such as the economy, government regulations, and societal trends. According to this view, while a leader can still influence the success of their organization, they are not fully in control of it due to these external factors. This perspective is in contrast to the internal control view of leadership, which suggests that a leader has more control over their organization's success through their own actions and decisions.

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Question 6 2 pts A stock is expected to pay a dividend of $1.2 one year from now, $1.7 two years from now, and $2.3 three years from now. The growth rate in dividends after that point is expected to be 7% annually. The required return on the stock is 15%. The estimated price per share of the stock six years from now should be $ Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35). Margin of error for correct responses: +/- 10.

Answers

Te estimated price per share of the stock six years from now is $26.92.

How to calculate the estimated price per share of the stock

To calculate the estimated price per share of the stock six years from now, we need to use the dividend discount model:

P = D1/(1+r) + D2/(1+r)^2 + D3/(1+r)^3 + D4/(r-g)/(1+r)^3

where P is the estimated price per share, D1 is the dividend expected to be paid one year from now, D2 is the dividend expected to be paid two years from now, D3 is the dividend expected to be paid three years from now, D4 is the expected dividend in year four and beyond, r is the required return on the stock, and g is the growth rate in dividends after year three.

Substituting the values given:

P = 1.2/(1+0.15) + 1.7/(1+0.15)^2 + 2.3/(1+0.15)^3 + (2.3*(1+0.07)^3)/(0.15-0.07)/(1+0.15)^3

P = 0.7872 + 1.1377 + 1.4931 + 23.5064

P = 26.9244

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what mrp input shows how a product is manufactured? part 2 a. bill of materials (bom) b. inventory status file c. mrp logic d. none of the above.

Answers

A. Bill of Materials (BOM) .This bill is the MRP input that shows how a product is manufactured.

The Bill of Materials (BOM) is a crucial input in the manufacturing process. It provides a comprehensive list of all the components and raw materials required to manufacture a specific product. The BOM includes information such as part numbers, quantities, and descriptions of each item needed.

The BOM serves as a guide for the manufacturing process by outlining the hierarchical structure of the product and its associated components. It enables production planners and managers to determine the necessary materials, quantities, and dependencies for efficient production.

For example, let's consider the manufacturing of a bicycle. The BOM for a bicycle might include the following items:

1)Frame (1 unit)

2)Handlebars (1 set)

3)Wheels (2 units)

4)Tires (2 units)

5)Pedals (2 units)

6)Chain (1 unit)

7)Seat (1 unit)

8)Brakes (1 set)

9)Gears (1 set)

Each item in the BOM has a specific quantity associated with it, indicating how many units are required to assemble one complete bicycle.

BOM provides a detailed list of components and raw materials required, enabling production planners to effectively plan and manage the manufacturing process.

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if you are given an amount to start your business, what items will you considered and why?

Answers

If I were given an amount to start my business, there are several crucial items I would consider investing in. Here are the key items Market Research and Analysis, Product/Service Development, Marketing and Advertising, Infrastructure and Equipment, Human Resources, Legal and Regulatory Compliance, Contingency Fund.

Market Research and Analysis: Allocating funds for thorough market research and analysis is essential. It helps identify target customers, understand competition, and determine market trends, ensuring informed decision-making and a solid business strategy.

Product/Service Development: Investing in product or service development is crucial to create a high-quality offering that meets customer needs. This includes research and development, prototyping, and testing to refine the product/service before launch.

Marketing and Advertising: A portion of the funds should be dedicated to marketing and advertising efforts. This may include digital marketing campaigns, social media advertising, search engine optimization, and other promotional activities to create brand awareness and attract customers.

Infrastructure and Equipment: Setting up a reliable infrastructure and acquiring necessary equipment are vital. This includes office space, technology infrastructure, manufacturing equipment, or software tools that facilitate efficient operations.

Human Resources: Hiring the right talent is critical for the success of any business. Allocating funds for recruitment, training, and salaries is important to build a skilled team that can execute the business plan effectively.

Legal and Regulatory Compliance: Ensuring compliance with legal and regulatory requirements is crucial. Allocating funds for legal services and licenses/permits will help navigate legal complexities and avoid potential issues in the future.

Contingency Fund: It's prudent to allocate a portion of the funds for unexpected expenses or emergencies. Having a contingency fund provides financial security and allows the business to navigate unforeseen circumstances without compromising operations.

By investing in these areas, I can lay a strong foundation for my business, ensuring a well-researched strategy, quality product/service, effective marketing, efficient operations, compliance with regulations, and the ability to handle unforeseen challenges.

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How are college costs different based on the type and location of the school you choose as well as
your room and board arrangement?

Answers

Answer:

If you choose a private university, chances are your tuition is going way up. Prestigious university with accredited programs can also be a bit pricey. Same thing goes for Ivy league schools. Community colleges are relatively inexpensive anywhere you go. Universities in big cities often have a higher tuition if you're considering location. Room and board arrangements differ. If you choose to live on campus in a basic dorm the expense won't be too bad. Colleges could also have the option of off campus housing which is way more expensive and they have different rooms you can choose from. Meal plans are also included in room and board so that's something to consider.

Explanation:

What type of financial planning focuses on issues such as paying your monthly rent, paying tuition and fees, and cost of food, while still having some funds to use for entertainment, rest and relaxation?.

Answers

Personal finance is a term that covers your money management as well as saving and investing. These contain the budget, banking, insurance, mortgage, investments and retirement, tax, and estate planning. The term often directs to the entire industry that delivers financial services to people and homes and recommends financial and investment options.

Personal dreams and wishes - and plan to fulfill those essentials in your financial obstacle - also influence how you get the above. In order to use your earnings and savings most, it is necessary to be economical. Personal finance helps you learn the difference between good and bad suggestions and make intelligent financial conclusions.

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How does checkout assist help improve the customers checkout experience

Answers

A customer with the help of check-out assist can scan item barcodes before paying for their total shop without needing one-to-one staff assistance.

Self-service checkouts (SCOs), also known as aided checkouts (ACOs) or self-service checkouts, are machines that allow customers to complete their own transactions from a merchant without the need for a traditional staff checkout.

Self-service checkouts are most commonly found in supermarkets, but they are also found in department and convenience stores. Most self-checkout facilities are overseen by at least one staff member, who frequently assists customers with transaction processing, price correction, or other assistance.

Therefore, checkout assist help improve the customers checkout experience.

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It is said that there are a number of steps in designing an effective service system which include a) Establishing procedures to be followed in case of service failure b) Identifying failure-prone areas can be enabled by a service blueprint technique c) Obtaining feedback from the customers and continuous review of service delivery d) Defining and incorporating service standards and explicitly communicating them to the customers e) Empowerment enabled through training and other HR practices List them in the right order.

Answers

Answer is in a file below

cutt.us/tWGpn

What is the normal effect on the numbers of cost pools and allocation bases when an activity-based cost (ABC) system replaces a traditional cost system? Cost pools No effect Allocation bases Increase Cost pools No effect Allocation bases No effect Cost pools Increase Allocation bases No effect Cost pools Increase Allocation bases Increase

Answers

When an activity-based cost system replaces a traditional cost system, the normal effect on the numbers of cost pools and allocation bases is: Cost pools Increase and Allocation bases Increase.

What is activity-based cost (ABC) system? An activity-based cost (ABC) system is a cost accounting methodology that assigns expenses to activities. The cost of each operation, or activity, is determined based on its use of resources. ABC determines the expenses of products and services more correctly than traditional cost accounting methods.

ABC calculates expenses depending on activities and the resources that activities consume. Cost objects, which are the ultimate products and services that the company produces, are assigned costs based on their use of the activities. What are cost pools and allocation bases? A cost pool is a grouping of individual costs, such as labor or materials, that are assigned to a specific activity.

Each cost pool has its own allocation method, such as the number of hours worked on each product line or the number of machine hours. Allocation bases are the cost drivers station bases are frequently used.

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The balance on a credit card, that charges a 20%
APR interest rate, over a 1 month period is given in
the following table:
Days 1-5: $200 (initial balance)
Days 6-20: $350 ($150 purchase)
Days 21-30: $150 ($200 payment)
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
finance charge = $ [?]
Round to the nearest hundredth.
Enter

Answers

The balance on a credit card, that charges a 20% APR interest rate, the Finance charge is given as

$4.3055

This is further explained below.

What is the APR interest rate?

Generally, The interest rate that is applied to a loan, mortgage loan, credit card, etc. is referred to as an annual percentage rate of charge, which sometimes corresponds to a nominal APR and sometimes corresponds to an effective APR.

The annual percentage rate of charge is the interest rate for the entire year, as opposed to just a monthly fee or rate. It is a fee for financing that is presented in the form of an annual rate.

Interest rate APR = 12%

Average balance = ((200*5)+(350*15)+(150*10))/30

Average balance = $258.33

Average balance*APR/12

Finance charge =\(\frac{258.33*20 \%}{12 }\)

Finance charge = $4.3055

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Regulation SHO:________. I. requires every sell order to be marked either ""long sale"" or ""short sale"" II. requires every buy order to be marked either ""long purchase"" or ""short purchase"" III. places limits on ""naked"" short sales of equity securities IV. places limits on ""covered"" short sales of equity securities"

Answers

Answer:

I and III.

Explanation:

Regulation SHO is a securities and exchange commission (SEC) rule that is used to regulate "short sale" trading strategies. The main purpose of the "regulation sho" is to prevent unethical and fraudulent behaviors among brokers, investors and traders.

Regulation SHO;

1. Requires every sell order to be marked either "long sale" or "short sale" because it involves the application of a standard uniform rule to all equity securities short sales whether traded over the counter (OTC) or exchange listed.

2. Places limits on "naked" short sales of equity securities such as selling short and not delivering the sales to a short seller on settlement.

Hence, if a sales is short, it is assumed that it can be borrowed and delivered to a short seller by settlement on a specified date.

Additionally, short selling can be defined as an act of borrowing and sales of securities with the expectation that it will decrease in value and then returned to the lender.

Other Questions
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