Final Exam Question When you graduate from NU if you decide to pursue a career

Final exam question when you graduate from nu if you

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Final Exam Question: When you graduate from NU, if you decide to pursue a career of a thug and you kidnap a billionaire Over the counter market: Securities and derivatives that are listed and traded on an exchange are called listed instruments Securities and derivatives that trade directly between two parties, without an exchange as intermediary, are called OTC instruments, which is a much larger market than the market for listed instruments Unlike listed trades, OTC trades are not in the public domain and, unless reported by the parties to the trade, remain confidential OTC stock trades in the US are sometimes reported by investment banks to either the OTC bulletin Board if the relevant company files with the SEC, and/or to Pink Sheets (so named because stock quotes are printed on pink sheets), if the relevant company does not file with the SEC Due to exceptional growth experienced by the global OTC derivatives market, regulators are increasingly concerned about the potential systematic risk posed by this market
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International Investment Banking Euromarkets o Generic term used in international capital markets for securities issued and held outside the issuer’s country of origin o Bonds that trade in this market are called Eurobonds o Euromarkets exist to facilitate cross border financings by corporations and sovereign entities and were originally created in response to the Cold War during the 50s when the Soviet Union deposited their US dollars with European banks in Europe, outside of the control of the US government. o Due to restrictions on dollar lending activities to foreign companies and ceiling limits on interest rates offered for deposits, US banks also moved significant dollar balances to their merchant banking offices in Europe Emerging markets o Regulatory risks, ability for foreign companies to conduct businesses within the country American Depository Receipts o ADR represents US investor ownership of a non US company stock o An ADR that trades in the US market is priced based on the non-US company’s share price in their home market, but this price is adjusted based on prevailing FX rates, resulting in constant adjustments for changing FX spot rates and therefore a high degree of volatility in ADR prices Innovation: Convertible Securities: o Type of equity offering even though most convertibles are originally isusued in the form of a bond or preferred shares o Most convertible bonds or convertible preferred shares are convertible anytime at the option of the investor into a predetermined number of common shares of the issuer o This is called an optionally convertible security Delta Hedging (Black Shoals Asset Pricing Model) o The principal investors in most convertibles are hedge funds that engagein
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