Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Introduction to Investments in Securities

Financial Accounting

7. Receivables and Investments

Introduction to Investments in Securities

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Multiple Choice

What is the primary purpose of a stock exchange?

To provide a regulated marketplace for buying and selling securities

To issue new shares directly to investors

To guarantee profits for all investors

To set interest rates for financial institutions

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Verified step by step guidance

Understand the concept of a stock exchange: A stock exchange is a regulated marketplace where securities such as stocks and bonds are bought and sold. It facilitates transactions between buyers and sellers.

Analyze the options provided in the question: Evaluate each option to determine which aligns with the primary purpose of a stock exchange.

Option 1: 'To provide a regulated marketplace for buying and selling securities' - This is the core function of a stock exchange, ensuring transparency, fairness, and efficiency in trading.

Option 2: 'To issue new shares directly to investors' - This is not the primary purpose of a stock exchange. Issuing new shares is typically done through an initial public offering (IPO), which is facilitated by investment banks, not directly by the stock exchange.

Option 3: 'To guarantee profits for all investors' and Option 4: 'To set interest rates for financial institutions' - These are incorrect as a stock exchange does not guarantee profits nor does it set interest rates. Its role is limited to providing a platform for trading securities.