Speculators in Derivatives Markets

question 73

Multiple Choice

Speculators in derivatives markets

• A) reduce the efficiency of these markets.
• B) are acting contrary to U.S. securities laws.
• C) accept risk transferred to them by hedgers.
• D) reduce the liquidity of these markets.

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Definitions:

Financing Activities

Transactions that involve raising capital and repaying investors, affecting the equity and liabilities on the company's balance sheet.

Private Corporations

Companies that are owned by a small group of individuals and do not offer their shares of stock to the general public.

ASPE

Accounting Standards for Private Enterprises; a set of accounting standards for private companies in Canada.

Mortgage Payable

A liability representing money owed on a long-term loan used to purchase property, typically secured by the property itself.