Explanation:
Underwriters determine how risky an insurer's business is. By appropriately valuing investment risk, underwriting aids in the establishment of fair borrowing rates for loans, the establishment of appropriate premiums, and the creation of a market for securities.
Explanation:
Buying and selling stocks outside of an established stock market is referred to as OTC (over-the-counter). Penny stocks, bonds, derivatives, ADRs, and currencies are examples of OTC investments. OTC markets are electronic networks that allow two parties to trade with one another without the use of a dealer-broker.
Explanation:
The primary market is where securities are formed in order to be offered for the first time to investors. Above all, the primary market allows firms, governments, and others to raise cash by issuing new securities on an exchange. Stocks, corporate or government bonds, notes, and bills are examples of securities issued through a primary market.
Explanation:
The yearly interest created by a sum charged to borrowers or paid to investors is known as the annual percentage rate (APR). APR is a percentage that represents the actual annual cost of money over the course of a loan or investment. This includes any transaction fees or additional expenditures, but not compounding. Consumers can compare APRs between lenders, credit cards, and investment products since they provide a bottom-line number.
Explanation:
The stock market is a marketplace for investors to buy and sell investments, most often stocks, which are ownership shares in a publicly traded firm.
Explanation:
The state of a financial market in which prices are rising or are expected to rise is known as a bull market. The word "bull market" is most commonly associated with the stock market, although it may also be applied to any tradable asset, including bonds, real estate, currencies, and commodities.
Explanation:
The monetary worth of all finished goods and services produced inside a country over a given time period is referred to as the gross domestic product (GDP). GDP is a measure of a country's economic health that is used to calculate its size and rate of growth. GDP can be computed in three different ways: expenditures, output, and incomes.
Explanation:
The ease with which an asset, or security, can be changed into immediate cash without impacting its market price is known as liquidity. Cash is the most liquid asset, whereas tangible goods are less so. Market liquidity and accounting liquidity are the two most common types of liquidity.
Explanation:
A credit score has complete control over financing rates, attractive mortgages, and an investor's negotiating power when applying for a loan. If you have negative credit or a low credit score, you can still invest in real estate, but it will affect potential investors and loan programs.
