Does a perfect capital market exist in the real world? | Homework.Study.com (2024)

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• In perfect capital markets there are what?
• 1. In a world of perfect financial markets, is the cost of capital of the firm's financial claims independent of how it is financed? 2. In a world of perfect financial markets (but not necessarily pro
• True or false? The main purpose of the financial markets is to bring together those with capital to invest and those who need capital.
• What is a capital market?
• What is the capital market?
• True or false? Cash markets are often referred to as spot markets.
• What kind of efficiency does a real-world financial market have?
• Distinguish between the money and capital markets.
• What is the capital market? How is the primary market different from the secondary market?
• In a world of perfect financial markets, is the value of the firm independent of how it is financed if there are also non financial liabilities?
• Do real-goods markets or financial capital markets have more influence on exc
• What is true with respect to spot market liquidity?
• Working capital spontaneously finances itself because it is being turned over all the time. True False Uncertain Justify your answer.
• Is there a good and reputed financial and capital markets course in Mumbai right now?
• True or False? The four quadrants of capital markets are public, private, debt, and bonds.
• True or false? Capital markets are all the financial institutions that help a business raise long-term capital.
• Why do financial markets exist?
• The financial market doesn't seem quite right, what are the possible reasons?
• Would it be valid to say that financial markets, whatever their merits, promote inequality in an economy?
• What would financial markets theoretically look like without the economic problem of scarcity?
• Do financial markets ever behave in a manner consistent with hyperbolic discounting?
• Is the betting market at roulette an efficient market?
• Pick any real-world company and write about what kinds of capital they have raised or are raising.
• Has Easy Money created froth in financial markets across the world?
• The investment banker is not a market maker. True or False?
• A private equity firm typically manages one fund. True or false?
• Does capital punishment exist for financial crimes in the United States? Should it?
• What is a "Bubble?" Does a bubble in the Stock Market mean that the Market is not efficient?
• What is the economic capital capital of India?
• If you borrow capital to start a business and the money is provided interest-free, then your cost of capital is zero. O True O False
• In finance, define capital rationing.
• Capital loss carryovers for individuals are carried forward indefinitely. a. True b. False
• Capital structure refers to the financing of long-term investments. a. True. b. False.
• Is there a possibility to create an efficient free economy without neither stock nor financial markets?
• Is random walk theory wrong, as it pertains to the financial markets?
• The Eurodollar market is larger than any financial market in the United States. a. True b. False
• Can the current financial markets be regulated, or do they need to be reinvented?
• True or false? Primary market transactions cannot be undertaken in over-the-counter markets.
• Does value investing works as well now as it did before the Great Recession?
• If markets are usually a good way of making people better off, (a) then what is wrong with people accessing credit at low prices? (b) Is this not simply the market allocating scarce resources appropri
• A good portfolio is a collection of individually good assets. True or false?
• Where on the internet can I find free financial market real time data?
• A broker deals solely in the primary market. True False
• What are some of the alternative sources from which private companies can raise equity capital?
• What would happen to the standard of living if financial institutions did not exist? Why?
• True or false? Ideas for capital investment should come from the engineering and sales departments rather than from the finance department.
• Where can you learn real value investing?
• The dream of most venture capitalists is to have the companies they invest in "go public" through an IPO. a. true b. false
• What are the sources of financial capital in an economy?
• True or False? Public markets are quicker to react to information but less prone to overreact.
• What is true about The Federal Open Market Committee?
• What investments should you consider to achieve liquidity and an adequate return?
• Why are mortgage markets studied as a separate capital market?
• True or False? A mezz loan is generally collateralized by equity.
• Investors in securities markets do not use a financial intermediary. a. True. b. False.
• Investing in the stock market is exactly the same as gambling. True False
• In an ideal world, could every individual decide what part of the government budget their money is used?
• The existence of financial middlemen and financial intermediaries decreases the efficiency of the financial markets. True False
• Are there any viable alternative models to the traditional financial system that's in place today (free markets, stocks, money)?
• Why do banks not eliminate the need for money markets?
• Which is a better investment, 16% at market value Rs 80 or 20% at market value Rs 120?
• True or false? Liquid assets are valuable to a firm.
• What is the current scenario of world financial market?
• What is a target capital structure?
• What is the unique market niche for GPS capital markets, and what does it have to offer compared to larger banks and other financial institutions?
• The required risk premium for any investment is given by the security market line. a. True b. False
• True or false? Each purchase occurring in the secondary markets increases the total stock of financial assets that exist in the economy.
• Is there such thing as a quantitative private equity firm?
• Why do businesses use the money markets?
• True or False? Securitization is the substitution of more efficient public capital markets for less efficient, higher cost, financial intermediaries in the funding of debt instruments.
• What is the capital structure of a firm?
• True or false: The secondary markets provide pricing information and liquidity to investors.
• True or false? Corporate bonds are a form of equity.
• True or false? A bear market occurs when investors are pessimistic about the economy.
• Is it true that the financial crisis of 2008 happened because of non-regulated markets and neoliberal economics?
• Working capital loans tend to be short-term in nature. A) True. B) False.
• Which of the following markets is the most stable? a. The market for corporate bonds. b. The real estate market. c. The market for Treasury bonds. d. The New York Stock Exchange. e. The Chicago Mercantile Exchange.
• Under section 203 (b), the FHA lends to the secondary market. a. True b. False
• Is capitalism the most successful economic and political system ever created?
• Savings institutions can obtain capital by what?
• True or false: The most common source of initial start up capital for a new business is a bank.
• Is it possible to become rich by investing on financial markets?
• The Eurocurrency market continues to thrive because it is a large international money market relatively free from governmental regulation and interference. Recent events may lead to greater regulation. a. True b. False
• Given that the stock market and real estate are currently decreasing in value, what do you consider a good investment right now?
• Finance companies can accumulate capital by doing what?
• What is true about Commercial finance companies?
• What is an inverted market?
• Venture capitalists are considered a part of the private equity industry. a. True. b. False.
• What is the economic capital of India?
• True or False? The financial system is a close network of independent markets. Select one: True or False
• What financial market would be smarter to go into if I have little startup capital, and a small amount of time to invest daily?
• What should be the ideal savings structure (mix of equity, debt, cash in hand, insurance, real estate etc.) for an executive working with a private firm at a CTC of around INR 20 lacs per annum?
• As the secondary market for loans has become active, banks are more able to satisfy their liquidity needs with a what proportion of loans while achieving what profitability?
• Do free market capitalists believe that financial government corruption is a problem?
• The process of convergence towards an international regulatory norm of international equity markets was finally achieved in the year 2011. a. TRUE b. FALSE
• True or false? Over-the-counter markets include all security markets, with the exception of organized exchanges.
• Although it is highly regulated the Euro-equity market has a low cost of issuance and the presence of a large pool of international investment funds. a. TRUE b. FALSE
• What is the market segmentation theory of interest rates? Do you think distinct market segments currently exist in the financial markets? Why or why not?
• List the principal capital market instruments.
• Is Zebpay a real and authentic app to invest in bitcoins?