Question

Directions: Answer the following questions on a separate document. Explain how you reached the answer, or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above. A. In your own words, please identify two different stock exchanges in the United States. Describe the similarities and differences between the two stock exchanges. Identify one stock from each of the two stock exchanges. B. Using the two stocks you identified, determine the free cash flow from 2013 & 2014. What inference can you draw from the companies’ free cash flow? C. Using the most recent financial statements for both stocks, prepare two financial ratios for each of the following categories: liquidity ratios, asset management ratios, and profitability ratios. You should have a total of six ratios for each stock, per year. What challenges, strengths, or weaknesses do you see? Please be articulate.

Answer 1

As the answer contains many sub questions, So i have answered first 4 subparts of it:

1) Two stock exchanges - The two primary stock exchanges in US are NYSE and NASDAQ.

2) Similarities between them - They both are equity exchanges and biggest exchanges in US market. They allow the companies to sell stocks to raise money i.e issue IPO.

3) Differences between them - The companies over NYSE are more stronger and stable then on NASDAQ. NYSE has much strickter norms as compared to NASDAQ. NYSE is considered specialist driven market while NASDAQ is more of dealer's market.

4) NYSE stock - Abbott Laboratories.

NASDAQ - Microsoft Corp