Exam 10: Securities Markets: Trading Financial Resources

One of the key responsibilities of an investment bank is to arrange for the actual sale of the securities.

A bond or share of preferred stock that gives its holder the right to exchange it for a stated number of shares of common stock is referred to as a century bond.

VIO is a giant aviation company based in the United Kingdom. It is listed on the London Stock Exchange among the most actively traded companies. Albert has recently invested in the company shares of VIO. Therefore, he wants to keep a track on how the company stocks are performing. In this scenario, which of the following stock price indices would be helpful to Albert?

Which of the following is a difference between dividends on stock and interest on bonds?

In the context of each NASDAQ stock, the bid price indicates how much a market maker will pay per share to buy a stated quantity of the stock.

The price at which shares of an open-end mutual fund are issued and redeemed is based on the fund's _____.

Lydia sells her ancestral property for a handsome amount of money. She invests this money in various securities. She decides not to trade the securities for a while and lets her money increase with the growth of the overall market. However, after almost eight years, when she feels that the value of the securities has risen considerably, Lydia sells her stocks and receives high returns on her investment. In this scenario, Lydia has used the _____ investment strategy.

In the context of personal investing, brokerage firms sometimes charge inactivity fees when investors:

Anvis Asset Management Fund is a mutual fund company that sells securities to investors and uses the money to purchase bonds and corporate stocks. Anvis Asset Management Fund is a(n) _____.

An online food delivery service goes out of business owing to stiff competition. The company has long overdue taxes because of which its stockholders do not receive the proceeds of the company after its dissolution. In this case, the company is not able to fulfill the _____ of its stockholders.

The Sarbanes-Oxley Act of 2002 reversed the Glass-Steagall Act's prohibition of banks selling insurance or acting as investment banks.

In the context of the various strategies for investing in securities, a buy-and-hold approach works only if a person makes frequent trades.

BrunoCaf is an American coffee manufacturing company headquartered in New York. Recently, there was a market discrepancy and because of that its stock prices fell below their original values. HYPERLINK "https://en.wikipedia.org/wiki/Vevey" However, given the slow but steady progress of the company, Marcos is confident that the market price of the stocks will rise with time, and he decides to invest in its stocks. In this scenario, Marcos uses the strategy of _____ in his investing decision.

In the context of mutual funds, which of the following is a difference between a closed-end fund and an open-end fund?

A(n) _____ is a type of stock that gives its holder priority over common stockholders in terms of dividends and claims on assets.

The rationale behind why the Glass-Steagall Act mandated the ban on commercial banks from dealing in securities markets and selling insurance was that such activities:

In the context of the deregulation during the 1980s and 1990s, critics argued that laws such as the Glass-Steagall Act and the Securities Exchange Act represented an onerous government intrusion into the financial sector that:

A _____ issued by an investor instructs a broker to buy or sell a security at its reigning price at that particular time.

Elyon holds a savings account in the Rochester City Bank in the United States. During an economic downturn, the bank suffers great losses. Elyon, however, is insured under the Federal Deposit Insurance Corporation and his savings are protected as the insurance covers his deposit value. Which of the following laws ensured the protection of depositors from a bank's failure?

Which of the following is true of stock exchanges?