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Explain What Is Included in M1 and M2

question 435

Essay

Explain what is included in M1 and M2. Is all of M1 money? Is all of M2 money?


Definitions:

Rights Offering

A financial opportunity offered by a corporation to its existing shareholders to purchase additional shares directly from the company at a discounted price.

Firm Commitment

A guarantee given by an underwriter to purchase all the unsold shares in an initial public offering or a secondary offering.

Financial Responsibility

The ability to manage one's financial resources wisely, including saving, investing, and spending in a manner that ensures long-term financial stability.

Syndicate Buys

Refers to a group of investors or underwriters pooling together to buy the entire or a large portion of a new securities issue for resale.

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