The stock market is a market where shares are traded. These shares determine their value with the help of determinants like demand ,supply and other factors which result in the profits and losses for share traders.
Therefore the CEO was having and inside information about government policies and she used that information for gaining undue advantage, so can be said as guilty of insider trading, OPOTION C is correct.
Learn more about Insider trading here:
Answer:
The correct answer is (C)
Explanation:
Simone the CEO of a pharmaceutical company has sold company stock because of inside information. Any trade which results due to inside information is known as insider trading. Any information which is not public is known as inside information that leads to abnormal profits. Government, company owners and stock market officials are the ones who generally have such type of information.
Answer:
A U.S.-based MNC has just established a subsidiary in Algeria. Shortly after the plant was built, the MNC determines that its exchange rate forecasts, which had previously indicated a slight appreciation in the Algerian dinar, were probably false. Instead of a slight appreciation, the MNC now expects that the dinar will depreciate substantially due to political turmoil in Algeria. This new development would likely cause the MNC to reduce its estimate of the previously computed net present value.
Explanation:
The difference between the present value of cash inflows and the present value of cash outflows over a period is referred to as the net present value (NPV).
NPV is used In capital budgeting and investment planning, NPV is used to analyze the profitability of a projected investment or project.
The company should therefore reduce the estimates because it will increase the discount rate which would, in turn, impact the net present value (NPV) and drag it down to lower value.
Answer:
This new development would likely cause the MNC to LOWER its estimate of the previously computed net present value.
Explanation:
All companies making foreign direct investments are face currency exchange risks. In this case, the Algerian dinar was expected to appreciate against the US dollar, which meant that nay calculations regarding the future cash flows could be carried out considering a strong dinar.
But now, due to internal turmoil the dinar is expected to depreciate heavily and that will reduce the future cash flows and negatively affect the NVP.
Imagine that a product has an initial investment of $1 million, and you needed 10 dinars to purchase $1. Then the future cash flows for the following 5 years were 3 million dinars per year, and the company required a 10% rate of return.
Since the company is based in the US it had to calculate the cash flows in US dollars, each cash flow = $300,000.
But if the dinar depreciates 15% against the US dollar, then each cash flow will equal $255,000.
We can use an excel spreadsheet and the NPV function to calculate the NPVs for both estimated and actual scenarios.
b. Find whole words only
c. Replace with
d. Find and Replace what
Answer:
b. Find whole words only
Explanation:
All Office Package software, to which Power Point belongs, has a feature so you can find a word. In the case of Power Point, you need to click on the "home page" tab and then click on "find" (this button has a binocular symbol). Then you need to check "Find whole words only" and type the word you are looking for (cat). This mechanism prevents the software from finding other words that have "cat" in its composition, such as "catch up". This way the software will find only the word "cat".
Answer:
d)Amount of money required to keep a business running is the correct answer.
Explanation:
b. telephone marketing
c. catalog marketing
d. direct-response television marketing
Answer: Methods of catalog marketing would likely be most effective in accomplishing this goal of reaching potential customers who live outside of the company's existing markets.
Catalog marketing is know as a method used by business organizations to club several commodities together in a printed piece, in order for them to sell at least one commodity to the consumer.
Hence, the correct option is (c)