Exam 10: Securities Markets: Trading Financial Resources

Which of the following statements is true of bonds?

Mrs. Jamieson, a retiree, likes to invest in preferred stocks and bonds as it involves very little risk. She knows that the value of many of these stocks will not increase drastically, but the small returns help supplement her pension. Mrs. Jamieson's approach is an example of the market timing strategy.

Ellizon Fiber Optics, a publicly traded firm, has approximately 1200 shareholders and $32 million in assets. Given the specifications of the company, the Securities and Exchange Commission (SEC) mandates Ellizon Fiber Optics to:

Goodwin Ross MidCap Growth is a fund that lets its investors buy ownership in a market basket that contains different securities. The fund's market basket has a composition that is similar to the composition of the Dow Jones Industrial Average stock index. In this scenario, Goodwin Ross MidCap Growth is a(n) _____.

_____ is found by multiplying the price per share times the number of shares of common stock outstanding.

Tony is facing a financial crisis in his business. Instead of applying for a loan from a commercial bank, he takes a loan from the cooperative that he partly owns with some of his friends. This cooperative acts as a depository institution where all the members deposit their savings on a higher interest rate than that offered by commercial banks. Being a member of this cooperative, he gets the advantage of being charged lower interest rate on his loan. Based on the information given in the scenario, the cooperative owned by Tony and his friends exemplifies a(n) _____.

Par value is the value of a bond at its maturity; what the issuer promises to pay the bondholder when the bond matures.

Which of the following is a difference between credit unions and commercial banks?

A(n) _____ is the first time a company issues stock that may be bought by the general public.

The government of Brunasia issues bonds with a guarantee to make periodic interest payments on the par value. The government offers a 6.5% interest on its bonds. In this case, the percentage of interest offered by the government of Brunasia is called the _____.

Exchange-traded funds and mutual funds account for:

The stocks of firms that do not meet the listing requirements of stock exchanges are traded on the _____.

The _____ of 2010 expanded the Fed's regulatory authority over nondepository financial institutions, such as hedge funds and mortgage brokers that had previously operated with little regulatory oversight or accountability.

According to critics, the Glass-Steagall Act:

In the context of personal investing, which of the following statements is true of discount brokers?

Jason and Edward held stocks in a cell phone manufacturing company. However, when the company went out of business in a few years and liquidated its assets, Edward rightfully received his share in the company proceeds before Jason. Based on the given information, it can be concluded that Edward was a _____.

Lina, along with ten of her colleagues, starts a financial cooperative to financially assist each other. The members pool their savings in the cooperative, and they can also take loans from it on a low interest rate. Members of the cooperative benefit from higher returns on savings and lower rates on loans. In this scenario, the cooperative started by Lina and her colleagues exemplifies a(n) _____.

Which of the following is true of the Securities Act of 1933?

Vincent is actively engaged in the stock market and frequently buys and sells stocks for personal profits. With a good insight about the market trends, Vincent is mostly able to sell his stocks at higher prices than the prices at which he purchases them. Vincent is a(n) _____.

Involved in private placements, _____ are individuals, businesses, or other organizations that meet specific financial requirements set by the Securities and Exchange Commission.