How Does a Bond Dealer Generate Profits When Trading Bonds

question 79

Multiple Choice

How does a bond dealer generate profits when trading bonds?

• A)by maintaining bid prices lower than ask prices
• B)by maintaining bid prices higher than ask prices
• C)by retaining the bond's next coupon payment
• D)by lowering the bond's coupon rate upon resale

Understand the role and outputs of the FASB Emerging Issues Task Force.

Understand the process and considerations involved in the international convergence of U.S. accounting standards.

Understand the differences in moral orientations between men and women according to Carol Gilligan.

Recognize the stages of Kohlberg's theory of moral development and their characteristics.

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Definitions:

Run Out of Money

A situation where an individual or organization depletes their financial resources completely, rendering them unable to meet their financial obligations.

Chance of Success

The probability or likelihood that a specific action, endeavor, or strategy will lead to a desirable outcome or achieve specific goals.

Entrepreneurial Venture

A new business or startup that is initiated by an entrepreneur with the aim of seeking innovation, growth, and profit.

Entrepreneurs

Individuals who create, organize, and manage a new business or enterprise, taking on greater than normal financial risks in order to do so.