Explain efficient market hypothesis and its three forms

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1. Describe the organization of the statement of cash flows. And how do you compute net income?

2. What is the realization principle, and why may it lead to a difference in the timing of when revenues are recognized on the books and cash is collected?

3. Explain Efficient market hypothesis and its three forms.

4. What is an IPO, and what role does an investment banker play in the process? Suppose you own a security that you know can be easily sold in the secondary market, but the security will sell at a lower price than you paid for it. What would this mean for the security’s marketability and liquidity?

Reference no: EM131025496

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