Exam 10: Securities Markets: Trading Financial Resources

Which of the following is a difference between full-service brokers and discount brokers?

_____ overturned the section of the Banking Act of 1933 that prohibited commercial banks from selling insurance or performing the functions of investment banks.

The difference between the prices at which securities dealers buy and sell a security is called _____.

Urasil Mobil Corporation is a small petrochemicals firm. Since the owners of the firm do not want to pay a high listing fee, the firm's shares are not listed on an organized exchange. In this case, Urasil Mobil Corporation would trade its stocks in the _____.

Almost all firms that go public enlist the help of an investment bank that specializes in helping firms issue new securities. Under a best efforts approach, the investment bank:

Which of the following statements is true of open-end mutual funds?

Andy invests in Orelon Corp., a plastic manufacturing company. As a stockholder, he owns a part of the company and he holds the right to vote on company issues. However, he is entitled to dividends only when the company's board of directors decides to. According to the company policies, if Orelon Corp. faces dissolution in the future, Andy will receive his assets only after the company satisfies the claim of the preferred stockholders. Based on the given information, it can be concluded that Andy is a _____.

The Dodd-Frank Act of 2010 created the Financial Stability Oversight Council to identify emerging risks in the financial sector so that action could be taken to rein in risky practices before they led to a crisis.

In private placements, _____.

The date a bond comes due is called its record date.

In the context of stock indices, which of the following is a difference between the Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500 (S&P 500)?

In the context of the various strategies for investing in securities, investors who favor value investing:

Colbert Blanc is a financial intermediary that helps firms raise their capital by facilitating the firms in issuing new securities and making sure that the securities are sold out in the market. In this scenario, Colbert Blanc is a(n) _____.

Which of the following is a true statement about personal investing?

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ) has never:

Discuss how the government regulates securities markets.

Samuel assists his clients in investing in the stock market. He not only acts as an agent by buying and selling corporate stocks and bonds on behalf of them, but also provides them with services like financial consultation and market research for a fee. In this scenario, Samuel plays the role of a(n) _____.

Jeremy holds 14.5% shares of stock in an automobile company. As per the company norms, if the company issues new stock, as an existing stockholder, Jeremy can buy 14.5% of the new shares before the stock is offered to the other investors of the company. Which of the following common stockholder rights does this scenario exemplify?

The FTSE 100 is an index of the stock prices of the largest traded companies listed on the London Stock Exchange.

A sell limit order tells a broker to sell the shares only if the price is at or above a specified value.