Exam 10: Securities Markets: Trading Financial Resources

Mr. Lewis bought 650 shares of stocks in Garrett Corp. the previous year at a price of $19 per share. The market price has now risen to $25 per share. This result indicates that Mr. Lewis could receive a capital gain if he sells his stock.

In the context of bonds, the current yield expresses a bond's interest payment as a percentage of the bond's present market price rather than its par value.

In the context of choosing a broker, which of the following statements is true of robo advisors?

Investors using a(n) _____ often invest in stocks of relatively new companies with innovative products in a hot sector of the economy.

Danner City Bank, a commercial bank in Oklahoma, was suffering from financial losses. Once the U.S. government passed the _____ in 1999, the bank started recovering from its losses as it was allowed to sell its securities.

In a buy-and-hold investment approach, _____.

In a public offering, securities are sold to anyone among the interested investors who is willing and financially able to buy them.

The preferred stock of a firm sometimes includes a cumulative feature. This means that:

Which of the following is a drawback of mutual funds?

Glen wants to find the stock prices of some of the large actively traded companies listed on the Tokyo Stock Exchange. Which of the following stock indices should Glen follow?

In the context of tracking the performance of specific securities, a higher price-to-earnings (P/E) ratio means:

Exchange-traded funds (ETFs) allow investors to buy ownership in a market basket of many different securities.

Olivia owns convertible securities in a company that manufactures electrical appliances. If the conversion ratio for the convertible securities is 50, it means that:

In the context of the primary securities market, in a private placement, _____.

Which of the following is a disadvantage of market timing?

Which of the following is a drawback of private placements?

Corporations that get into serious financial difficulties sometimes:

Cartman owns convertible securities in OctoCore Corp. If the conversion ratio for the convertible securities is 37, it means that:

In the context of open-end mutual funds, the net asset value per share (NAVPS) is computed by:

A _____ is an order to a broker to buy a specific stock only if its price is below a certain level, or to sell a specific stock only if its price is above a certain level.