Mr. Carlos Small is an entrepreneur who has done very well in business and would like to become an investor on the Jam Love Stock Exchange. Mr Small has never invested on a Stock Exchange before and is not knowledgeable of how it is operated and its functions. He has watched the Owen James Report on Television Jamaica for many years and is familiar with a few terms such as liquidity, stock advancing, stock declining and stock trading firm but he does not know what they mean and how to read and understand the Stock Market Reports that are published in the major News Papers in the country. Mr. Small was encouraged to speak with a stockbroker at VLC Investment Company. Mr. Smith took the advised and visited VLC Investment Company where he met Mr. Peter Brown a stockbroker, who answer all his queries and concerns. Mr. Peter Brown used a Stock Market Report to illustrate the following: Security Volume Traded Value Traded ($) This Periods Change Close Price ($) Closing Bid ($) Closing ($)Ask High ($) Low ($) $ AFS 6 400 192 000 30.00 30.00 2.50 30.00 30.00 32.00 BPG 14 520 627 390 50.00 40.40 9.59 50.00 46.50 50.00 CAC 2000 24 800 151 280 6.10 6,10 -0.30 6.10 6.00 6.10 CFF 85 656 779 920 9.50 8.50 0.66 9,49 9,05 9.50 CPJ 86 867 373 270 4.50 4.10 0.41 4.46 4.45 4.50 CBJ 642 091 2 067 658 3.70 2.97 0.79 3.60 3.60 3.95 DCL 8697 126 579 14.74 14.30 -0,74 14.74 14.00 14.74 HBL 378 281 2 650 863 7.49 6.65 0.00 7.38 7.20 7.25 JTL 128 134 1 137 592 9.50 8.50 0.05 8.65 8.60 9.00 JCL 751 153 7 735 657 10.50 9.50 0.00 10.48 9.50 10.50 LDL 1 056 151 7 525 294 7.30 7.00 -0.08 7.30 7.25 7.30 ACCT3602 22/08 The Council of Community Colleges of Jamaica Page 3

A. Define liquidity and list TWO (2) factors that contribute to it