Podcast
Questions and Answers
What is a major reason why finance has recently become an active research area?
What is a major reason why finance has recently become an active research area?
- The availability of high-frequency transactions data. (correct)
- The increase in company profits.
- The government's influence on financial markets.
- The rise of financial intermediaries.
What is one way the government influences finance?
What is one way the government influences finance?
- By imposing taxes on investors and financial intermediaries. (correct)
- By regulating the minimum wage.
- By investing in the stock market.
- By providing loans to companies.
What is the primary goal of mainstream theoretical research in finance?
What is the primary goal of mainstream theoretical research in finance?
- To understand the role of government in finance.
- To develop new financial products.
- To predict stock market crashes.
- To seek rational explanations for observed phenomena. (correct)
What is an example of a research question in finance?
What is an example of a research question in finance?
What is the purpose of empirical research in finance?
What is the purpose of empirical research in finance?
What is an example of a financial transaction that involves the government?
What is an example of a financial transaction that involves the government?
What is the role of the Financial Services Authority?
What is the role of the Financial Services Authority?
What is a common research goal in finance?
What is a common research goal in finance?
What is the main difference between incorporated and unincorporated businesses?
What is the main difference between incorporated and unincorporated businesses?
What is a characteristic of private limited companies?
What is a characteristic of private limited companies?
What is a disadvantage of unincorporated businesses?
What is a disadvantage of unincorporated businesses?
What is the primary advantage of unincorporated businesses in terms of financial accounts?
What is the primary advantage of unincorporated businesses in terms of financial accounts?
What percentage of the top 700 companies in the UK are quoted on the stock market?
What percentage of the top 700 companies in the UK are quoted on the stock market?
What is the main difference between public limited companies and private limited companies?
What is the main difference between public limited companies and private limited companies?
What is a limitation of unincorporated businesses in terms of growth?
What is a limitation of unincorporated businesses in terms of growth?
What is the primary goal of shareholders in a PLC?
What is the primary goal of shareholders in a PLC?
What is the term used to describe the liability of unincorporated businesses?
What is the term used to describe the liability of unincorporated businesses?
What is debt capital in a PLC?
What is debt capital in a PLC?
What is the most common type of incorporated business?
What is the most common type of incorporated business?
What is the relationship between debt holders and the company's assets?
What is the relationship between debt holders and the company's assets?
What is the maximum amount shareholders can lose in a PLC?
What is the maximum amount shareholders can lose in a PLC?
Who selects the managers of a PLC?
Who selects the managers of a PLC?
What is a characteristic of a PLC that distinguishes it from unincorporated businesses?
What is a characteristic of a PLC that distinguishes it from unincorporated businesses?
What is a potential disadvantage of a PLC?
What is a potential disadvantage of a PLC?
Which of the following entities typically fall into the first category?
Which of the following entities typically fall into the first category?
What is the term for the return promised on the sum lent?
What is the term for the return promised on the sum lent?
What is the primary function of financial intermediaries in sophisticated financial systems?
What is the primary function of financial intermediaries in sophisticated financial systems?
What is the main purpose of the primary market function of the stock market?
What is the main purpose of the primary market function of the stock market?
What motivates investors to trade shares when they believe a share is underpriced or overpriced?
What motivates investors to trade shares when they believe a share is underpriced or overpriced?
What is a characteristic of both public debt/bond markets and stock markets?
What is a characteristic of both public debt/bond markets and stock markets?
What is the main advantage of having a secondary market?
What is the main advantage of having a secondary market?
What is the purpose of the secondary market function of the stock market?
What is the purpose of the secondary market function of the stock market?
What was the main function of jobbers in the pre-Big Bang era?
What was the main function of jobbers in the pre-Big Bang era?
What was a major concern in the stock market during the 1970s and 1980s?
What was a major concern in the stock market during the 1970s and 1980s?
What was the primary role of brokers in the pre-Big Bang era?
What was the primary role of brokers in the pre-Big Bang era?
What was the impact of fixed commission charges on the market?
What was the impact of fixed commission charges on the market?
What was the significance of Big Bang in 1986?
What was the significance of Big Bang in 1986?
What was the result of the dominance of a few jobbing firms?
What was the result of the dominance of a few jobbing firms?
How did jobbers operate in the pre-Big Bang era?
How did jobbers operate in the pre-Big Bang era?
What was the significance of Big Bang II in 1997?
What was the significance of Big Bang II in 1997?
Why do taxation rates on dividends and shares affect share values?
Why do taxation rates on dividends and shares affect share values?
What perspective of finance focuses on a firm's operations?
What perspective of finance focuses on a firm's operations?
What is the primary difference between corporate finance and accounting?
What is the primary difference between corporate finance and accounting?
Which of the following is NOT a category of financial transactions?
Which of the following is NOT a category of financial transactions?
Why do investors fall into different tax brackets?
Why do investors fall into different tax brackets?
What is the primary difference between corporate finance and financial markets?
What is the primary difference between corporate finance and financial markets?
What is the relationship between taxation and share values?
What is the relationship between taxation and share values?
What is the primary goal of corporate finance decisions?
What is the primary goal of corporate finance decisions?
What is the primary function of financial intermediaries, such as banks, in the financial system?
What is the primary function of financial intermediaries, such as banks, in the financial system?
What is the main difference between investing in a company's equity shares and investing in other securities, such as bonds?
What is the main difference between investing in a company's equity shares and investing in other securities, such as bonds?
What is the primary focus of the sub-field of finance known as market microstructure?
What is the primary focus of the sub-field of finance known as market microstructure?
What is the primary role of financial markets in the financial system?
What is the primary role of financial markets in the financial system?
What is the primary advantage of investing in a diversified portfolio of securities, such as stocks, bonds, and options?
What is the primary advantage of investing in a diversified portfolio of securities, such as stocks, bonds, and options?
What is the primary role of individual investors in the financial system?
What is the primary role of individual investors in the financial system?
What is the primary difference between investing in a company's equity shares and investing in its debt securities, such as bonds?
What is the primary difference between investing in a company's equity shares and investing in its debt securities, such as bonds?
What is the primary function of financial intermediaries, such as pension funds, in the financial system?
What is the primary function of financial intermediaries, such as pension funds, in the financial system?
What is the primary reason why the government issues government bonds through financial markets?
What is the primary reason why the government issues government bonds through financial markets?
What is the key objective of mainstream theoretical research in finance?
What is the key objective of mainstream theoretical research in finance?
What is the primary purpose of empirical research in finance?
What is the primary purpose of empirical research in finance?
What is a key aspect of the government's influence on finance?
What is a key aspect of the government's influence on finance?
What is a common area of research in finance?
What is a common area of research in finance?
What is the primary function of the Financial Services Authority?
What is the primary function of the Financial Services Authority?
What is an example of a research question in finance that involves understanding company decision-making?
What is an example of a research question in finance that involves understanding company decision-making?
What is a key aspect of the government's influence on finance through the Inland Revenue?
What is a key aspect of the government's influence on finance through the Inland Revenue?
What is the primary function of financial markets?
What is the primary function of financial markets?
What is the main difference between a primary and a secondary market?
What is the main difference between a primary and a secondary market?
What motivates investors to trade shares when they have surplus funds compared with expenditure?
What motivates investors to trade shares when they have surplus funds compared with expenditure?
What is the key role of figure 2 in illustrating the stock market?
What is the key role of figure 2 in illustrating the stock market?
What is the term used to describe the price of borrowing?
What is the term used to describe the price of borrowing?
What is the main advantage of having a secondary market?
What is the main advantage of having a secondary market?
What is the primary market function of the stock market?
What is the primary market function of the stock market?
What motivates investors to trade shares when they believe a share is underpriced?
What motivates investors to trade shares when they believe a share is underpriced?
What was the primary function of jobbers in the pre-Big Bang era?
What was the primary function of jobbers in the pre-Big Bang era?
What was a major concern in the stock market during the 1970s and 1980s?
What was a major concern in the stock market during the 1970s and 1980s?
What was the primary role of brokers in the pre-Big Bang era?
What was the primary role of brokers in the pre-Big Bang era?
What was the impact of fixed commission charges on the market?
What was the impact of fixed commission charges on the market?
What was the significance of Big Bang in 1986?
What was the significance of Big Bang in 1986?
What was the result of the dominance of a few jobbing firms?
What was the result of the dominance of a few jobbing firms?
How did jobbers operate in the pre-Big Bang era?
How did jobbers operate in the pre-Big Bang era?
What was the significance of Big Bang II in 1997?
What was the significance of Big Bang II in 1997?
What determines the current equilibrium price of a company's shares?
What determines the current equilibrium price of a company's shares?
What comprises the monetary return for shareholders?
What comprises the monetary return for shareholders?
Why do investors make estimates about future dividends and share prices?
Why do investors make estimates about future dividends and share prices?
What happens to a company's share price when new information becomes available?
What happens to a company's share price when new information becomes available?
What is an effect of asymmetric information between investors and managers?
What is an effect of asymmetric information between investors and managers?
What may signal management's confidence in the company's future prospects?
What may signal management's confidence in the company's future prospects?
What is the main concern of corporate finance in terms of financial decisions?
What is the main concern of corporate finance in terms of financial decisions?
Why do share prices change over time?
Why do share prices change over time?
What is the primary goal of researching empirical anomalies in finance?
What is the primary goal of researching empirical anomalies in finance?
What resolves uncertainty about a company's value?
What resolves uncertainty about a company's value?
Which disciplines are increasingly offering new insights into finance?
Which disciplines are increasingly offering new insights into finance?
What is the primary role of the legal framework in finance?
What is the primary role of the legal framework in finance?
Why are theories assuming some degree of investor irrationality likely to become increasingly important in finance?
Why are theories assuming some degree of investor irrationality likely to become increasingly important in finance?
What is the primary difference between corporate finance and management accounting?
What is the primary difference between corporate finance and management accounting?
What is the primary reason why a good working knowledge of theoretical economics is essential for understanding finance?
What is the primary reason why a good working knowledge of theoretical economics is essential for understanding finance?
What is the significance of financial reporting in finance?
What is the significance of financial reporting in finance?
What is the primary role of academics in the field of finance?
What is the primary role of academics in the field of finance?
What skill is vital for empirical research in finance?
What skill is vital for empirical research in finance?
What is the primary difference between finance and accounting?
What is the primary difference between finance and accounting?
What is the primary goal of researchers in the field of finance?
What is the primary goal of researchers in the field of finance?
What is the primary concern of financial statement analysis?
What is the primary concern of financial statement analysis?
What is the relationship between reported values and market values in finance?
What is the relationship between reported values and market values in finance?
What is the primary function of the Board of Directors in a PLC?
What is the primary function of the Board of Directors in a PLC?
What is the primary advantage of empirical research in finance?
What is the primary advantage of empirical research in finance?
What is the primary characteristic of empirical research in finance?
What is the primary characteristic of empirical research in finance?
What is the primary advantage of a PLC over an unincorporated business?
What is the primary advantage of a PLC over an unincorporated business?
What is the relationship between shareholders and the company's assets in a PLC?
What is the relationship between shareholders and the company's assets in a PLC?
What is the primary difference between share capital and debt capital?
What is the primary difference between share capital and debt capital?
What happens to the PLC when existing shareholders sell their ownership shares to new shareholders?
What happens to the PLC when existing shareholders sell their ownership shares to new shareholders?
What is the primary goal of shareholders in a PLC?
What is the primary goal of shareholders in a PLC?
What is a disadvantage of a PLC?
What is a disadvantage of a PLC?
What is the percentage of the top 700 companies in the UK that are quoted on the stock market?
What is the percentage of the top 700 companies in the UK that are quoted on the stock market?
In 1979, what action was taken by the government regarding the LSE rulebook?
In 1979, what action was taken by the government regarding the LSE rulebook?
What was the main concern of the LSE following financial deregulation around the world?
What was the main concern of the LSE following financial deregulation around the world?
What was the result of the changes made by the LSE on 27 October 1986?
What was the result of the changes made by the LSE on 27 October 1986?
What role did broker/dealers take on in addition to their traditional role after the Big Bang?
What role did broker/dealers take on in addition to their traditional role after the Big Bang?
What was the requirement for broker/dealers operating in different capacities?
What was the requirement for broker/dealers operating in different capacities?
What percentage of dealing was accounted for by three investment houses after the Big Bang?
What percentage of dealing was accounted for by three investment houses after the Big Bang?
What was the name given to the changes made by the LSE on 27 October 1986?
What was the name given to the changes made by the LSE on 27 October 1986?
What was the impact of the dominance of a few jobbing firms in the pre-Big Bang era?
What was the impact of the dominance of a few jobbing firms in the pre-Big Bang era?
