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Overpriced share and possible short sale target

Finance

Overpriced share and possible short sale target. c. Management manipulation of earnings to show a better picture of company's performance. d. Very small number of shares available for trading in the market. Essay Question 1: In March 2020, US Treasury bill (US government's borrowing maturing in one year or less) yields fell below zero. What happened with the prices of bills? 1 What happened with future profitability of investing in US bills? What could be the explanation - why the yield went down? Answer all 3 questions! Answer (3-7 sentences): 1009 704 parole DS Inglese (Stati Uniti Focus e Scrivi qui per eseguire la ricerca O BI

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Answer 1.) As it is a basic fact that Yields and Bonds Prices move in opposite order, So if yields are going down then price must be increasing.

Question 2.)

Answer 2.) When long term bond yields are lower than short term bond yields than we can say that there is uncertainty about the future outlook of the country but here is reverse case and it basically shows that the short term impact of COVID-19 is looking dangerous to investors but they are certain about long term prospectus as long term bond yields are positive.

Question 3.)

Answer 3.) Financial markets came to terms with the damaging effects of COVID-19, investors rushed out of Treasuries and go into cash. In some cases, this reflected their investment objectives—selling Treasuries to buy depressed equities, for example, but in others these sales were forced by losses on other positions or the need to settle short-term debts, and the market proved unable to handle the surge in Treasury sales. This can be stated as one of the major reasons that bond yields go down.