I have read a lot of textbooks on finance. A lot of sentences include "would", but I have difficultly understanding the intended meaning of them. The word "would" does not appear to express presumption or expectation or hypothecation or habitual action in the past.
Could you please help me to clarify this in these examples:
Authorize.net would be a competitor to our services. We do include some cascade options for other processors such as Epoch, but we do not support any other payment gateways.
Activities that generate fees, such as most investment banking activities, are straightforward. Accrual accounting rules similar to those that would be used by any other business apply.
CAT bonds typically give a high probability of an above-normal rate of interest and a low-probability of a high loss. Why would investors be interested in such instruments?
Consider two bonds that have the same coupon, time to maturity and price. One is a B-rated corporate bond. The other is a CAT bond. An analysis based on historical data shows that the expected losses on the two bonds in each year of their life is the same. Which bond would you advise a portfolio manager to buy and why?
Advocates of hedge funds would argue that hedge fund managers search for profitable opportunities that other investors do not have the resources or expertise to find. They would point out that the top hedge fund managers have been very successful at finding these opportunities.
The simplest type of trade is the purchase of an asset for cash or the sale of an asset that is owned for cash. Examples of such trades are:
- The purchase of 100 IBM shares
- The sale of 1 million British pounds for dollars
- The purchase of 1,000 ounces of gold
- The sale of $1 million worth of bonds issued by General Motors
The first of these trades would typically be done on an exchange; the other three would be done in the over-the-counter market. The trades are sometimes referred to as spot trades because they lead to almost immediate (on the spot) delivery of the asset.