Question 1

Stock brokers earn commissions from the individuals and organizations for whom they place orders.

Accepted Answer

A) True 
 B)False  True

Question 2

Initial public offerings (IPOs)are the first sale of a company's stock to the general public and are a major source of funds that fuel continued growth for many firms.

Accepted Answer

A) True 
 B)False  True

Question 3

The Dow Jones Industrial Average (DJIA)has remained unchanged in recent years.

Accepted Answer

A) True 
 B)False  False

Question 4

The stock of Simonsen,Inc.is being bought up by an individual who intends to take over Simonsen and sell off its assets for a profit.What is the individual in this scenario called?

Accepted Answer

A)  angel investor 
B)  corporate raider 
C)  inside trader 
D)  stock broker 
E)  bondholder 
A)  angel investor 
B)  corporate raider 
C)  inside trader 
D)  stock broker 
E)  bondholder

Question 5

What value of a stock is calculated by dividing total shareholders' equity by the total number of shares of stock issued?

Accepted Answer

A)  par value 
B)  market value 
C)  book value 
D)  chime value 
E)  total value 
A)  par value 
B)  market value 
C)  book value 
D)  chime value 
E)  total value

Question 6

More Americans are investing in the stock market through online trading.Explain the value of online trading.

Accepted Answer

The popularity of online trading stems f

Question 7

An investment bank operates in the secondary securities market.

Accepted Answer

A) True 
 B)False

Question 8

Marco is a bullish investor,but the stock market is currently bearish.What is Marco MOST likely to do?

Accepted Answer

A)  sell every stock and go to a 100 percent cash position 
B)  sell certain winning stocks to realize a profit and put the cash to work buying stock when prices are low 
C)  maintain all stock positions until the market completely recovers and then buy more stocks 
D)  sell losing stocks to avoid further losses, and hold onto winners 
E)  buy defensive stocks in the expectation that they will not fall much 
A)  sell every stock and go to a 100 percent cash position 
B)  sell certain winning stocks to realize a profit and put the cash to work buying stock when prices are low 
C)  maintain all stock positions until the market completely recovers and then buy more stocks 
D)  sell losing stocks to avoid further losses, and hold onto winners 
E)  buy defensive stocks in the expectation that they will not fall much

Question 9

Shawna has gotten into investing and is interested in aggressive growth funds.Which of the following must be true about Shawna?

Accepted Answer

A)  She is interested in the best possible returns over time. 
B)  She is interested in making money as quickly as possible. 
C)  She has comparatively little money to invest. 
D)  She wants to make as secure an investment as possible. 
E)  She is investing for a financial thrill ride. 
A)  She is interested in the best possible returns over time. 
B)  She is interested in making money as quickly as possible. 
C)  She has comparatively little money to invest. 
D)  She wants to make as secure an investment as possible. 
E)  She is investing for a financial thrill ride.

Question 10

In 2008,each share of GE stock was receiving annual dividend payments of $1.24.If,on a particular day,the share price was $33.82,what would the current yield be?

Accepted Answer

For annual dividend payments of $1.24 an

Question 11

Which of the following is an advantage of ETFs over mutual funds?

Accepted Answer

A)  ETFs can be traded throughout the day like a stock. 
B)  ETFs have high operating expenses. 
C)  ETFs do not require high initial investments. 
D)  ETFs are not regulated by the government. 
E)  ETFs are difficult to sell in a timely manner. 
A)  ETFs can be traded throughout the day like a stock. 
B)  ETFs have high operating expenses. 
C)  ETFs do not require high initial investments. 
D)  ETFs are not regulated by the government. 
E)  ETFs are difficult to sell in a timely manner.

Question 12

Which of the following is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold?

Accepted Answer

A)  stock exchange 
B)  brokerage 
C)  server 
D)  over-the-counter market 
E)  commission 
A)  stock exchange 
B)  brokerage 
C)  server 
D)  over-the-counter market 
E)  commission

Question 13

The largest stock exchange in the world is the Tokyo exchange.

Accepted Answer

A) True 
 B)False

Question 14

What is an angel investor?

Accepted Answer

Outside individuals who provide addition

Question 15

Explain what exchange-traded funds are and how they are tracked.

Accepted Answer

As with an index mutual fund,an exchange

Question 16

Aardvark is considering issuing corporate bonds in order to raise money.Which of the following,if true,would strengthen the case for doing this?

Accepted Answer

A)  The company's customer base has been declining. 
B)  The company has debts that need to be paid immediately. 
C)  The company's main interest is in long-term solvency. 
D)  The company is interested in cutting costs. 
E)  The company's assets are rapidly depreciating. 
A)  The company's customer base has been declining. 
B)  The company has debts that need to be paid immediately. 
C)  The company's main interest is in long-term solvency. 
D)  The company is interested in cutting costs. 
E)  The company's assets are rapidly depreciating.

Question 17

When are corporate bonds attractive to a firm?

Accepted Answer

Bonds are attractive when firms need lar

Question 18

Mathematically explain how a stock split works if a company has 100,000 common shares outstanding that are trading at $100 per share.

Accepted Answer

If a company has 100,000 common shares o

Question 19

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

Accepted Answer

A) True 
 B)False

Question 20

Unlike the Dow and the S&P 500,all NASDAQ-listed companies,not just a selected few,are included in the index for a total of some 3,400 firms across six continents.

Accepted Answer

A) True 
 B)False

Stock brokers earn commissions from the individuals and organizations for whom they place orders.

Initial public offerings (IPOs)are the first sale of a company's stock to the general public and are a major source of funds that fuel continued growth for many firms.

The Dow Jones Industrial Average (DJIA)has remained unchanged in recent years.

The stock of Simonsen,Inc.is being bought up by an individual who intends to take over Simonsen and sell off its assets for a profit.What is the individual in this scenario called?

What value of a stock is calculated by dividing total shareholders' equity by the total number of shares of stock issued?

More Americans are investing in the stock market through online trading.Explain the value of online trading.

An investment bank operates in the secondary securities market.

Marco is a bullish investor,but the stock market is currently bearish.What is Marco MOST likely to do?

Shawna has gotten into investing and is interested in aggressive growth funds.Which of the following must be true about Shawna?

In 2008,each share of GE stock was receiving annual dividend payments of $1.24.If,on a particular day,the share price was $33.82,what would the current yield be?

Which of the following is an advantage of ETFs over mutual funds?

Which of the following is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold?

The largest stock exchange in the world is the Tokyo exchange.

What is an angel investor?

Explain what exchange-traded funds are and how they are tracked.

Aardvark is considering issuing corporate bonds in order to raise money.Which of the following,if true,would strengthen the case for doing this?

When are corporate bonds attractive to a firm?

Mathematically explain how a stock split works if a company has 100,000 common shares outstanding that are trading at $100 per share.

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

Unlike the Dow and the S&P 500,all NASDAQ-listed companies,not just a selected few,are included in the index for a total of some 3,400 firms across six continents.

The U.S.Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality for Producing Goods and Services

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters

Exam 17: Managing Business Finances

Stock brokers earn commissions from the individuals and organizations for whom they place orders.

Initial public offerings (IPOs)are the first sale of a company's stock to the general public and are a major source of funds that fuel continued growth for many firms.

The Dow Jones Industrial Average (DJIA)has remained unchanged in recent years.

The stock of Simonsen,Inc.is being bought up by an individual who intends to take over Simonsen and sell off its assets for a profit.What is the individual in this scenario called?

What value of a stock is calculated by dividing total shareholders' equity by the total number of shares of stock issued?

More Americans are investing in the stock market through online trading.Explain the value of online trading.

An investment bank operates in the secondary securities market.

Marco is a bullish investor,but the stock market is currently bearish.What is Marco MOST likely to do?

Shawna has gotten into investing and is interested in aggressive growth funds.Which of the following must be true about Shawna?

In 2008,each share of GE stock was receiving annual dividend payments of $1.24.If,on a particular day,the share price was $33.82,what would the current yield be?

Which of the following is an advantage of ETFs over mutual funds?

Which of the following is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold?

The largest stock exchange in the world is the Tokyo exchange.

What is an angel investor?

Explain what exchange-traded funds are and how they are tracked.

Aardvark is considering issuing corporate bonds in order to raise money.Which of the following,if true,would strengthen the case for doing this?

When are corporate bonds attractive to a firm?

Mathematically explain how a stock split works if a company has 100,000 common shares outstanding that are trading at $100 per share.

An exchange-traded fund (ETF)is a bundle of stocks (or bonds)that are in an index that tracks the overall movement of a market.

Unlike the Dow and the S&P 500,all NASDAQ-listed companies,not just a selected few,are included in the index for a total of some 3,400 firms across six continents.

The U.S.Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality for Producing Goods and Services

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters