Buying and selling stock over the Internet has become a common way of playing the stock market. Why can this be risky for small investors?

A European manufacturer that exports goods made at its European plants to the United States

A) is competitively disadvantaged when the euro declines in value against the U.S. dollar.

B) is largely unaffected by fluctuating exchange rates between the euro and the U.S. dollar; it would, however, be affected if its plants were in the U.S.

C) becomes more competitive in the U.S. market when the euro declines in value against the U.S. dollar.

D) becomes more competitive in European markets when the euro declines in value against the U.S. dollar.

E) has no interest in whether the euro grows stronger or weaker versus the U.S. dollar unless its chief competitors are other companies located in countries whose currency is also the euro.

Matthew's parents started saving for his college education when he was born. When Matthew turned 16, he got a part-time job and saved part of his earnings for his college expenses. Compare and contrast the investment objectives of Matthew and his parents and describe the factors that influenced their investment decisions.

Are owners of common stock generally more interested in dividends or capital gains? Why?

The __________ of a country’s currency means that the country’s goods are less expensive for foreign buyers though foreign goods are more expensive for domestic buyers.

a. revaluation; appreciation

b. depreciation; devaluation

What are the advantages and disadvantages of currency boards and dollarization over a monetary policy that uses only an exchange-rate target?

Identify the exchange rates used to translate income statement and balance sheet items when the foreign currency is defined as the functional currency. Discuss the logic for the use of the exchange rates you identified.

For this question, answer true or false. Explain your answer.

A currency-hedged foreign-stock portfolio return is the weighted average of the foreign stock returns in local currency.

All of the following statements relating to accounting for international operations are true except:

A. Foreign exchange gains or losses can occur when accounting for international sales transactions.

B. Gains and losses from foreign exchange transactions are accumulated in the Fair Value Adjustment Account and are reported on the balance sheet.

C. Gains and losses from foreign exchange transactions are accumulated in the Foreign Exchange Gain (or Loss) account.

D. The balance in the Foreign Exchange Gain (or Loss) account is reported on the income statement.

E. Foreign exchange gains or losses can occur when accounting for international purchases transactions.

Due to the rising inflation by the late Ming dynasty, desperate merchants in China began using what form of currency?

Compute the price of a share of stock that pays a $1 per year dividend and that you expect to be able to sell in one year for$20, assuming you require a 15% return.

A stock pays an annual dividend of $1.02 per share. Calculate the dividends paid to a shareholder who has 375 shares of the company’s stock.

How can the company use currency options to limit its exposure to foreign exchange risks brought on by global transactions?

Which is the most common ecosystem type on Earth?