Exam 5: Financial Markets, Institutions, and Securities

Long-term financing used by corporations and government entities is

A feature that allows bondholders to change each bond into a stated number of shares of commonstock is called

___________are debt rated Ba or lower by Moody's or BB or lower by Standard & Poor's and were commonly used by rapidly growing firms to obtain growth capital, most often to finance mergers and takeovers of other firms, particularly during the 1980s.

Another term sometimes applied to a common shareholder is

__________is a short-term, unsecured promissory note issued by a corporation with a very highcredit standing.

A ___________consumers. Each user of the intermediary is required to buy a membership.

The nonexclusive sale of either bonds or stocks to the general public is called

Payment of interest required only when earnings are made available from which to make apayment is characteristic of

Dividends in arrears which must be paid to the preferred stockholders before payment of dividends to common stockholders are

Shares of stock currently owned by the firm's shareholders are called

___________bonds are characterized by interest payments that are required only when earnings are available from which to make such payment.

Regarding the tax treatment of payments to securities holders; it is true that ____________ , while___________.

All of the following are functions of security exchanges EXCEPT

The advantages of issuing preferred stock from the common stockholder's perspective include all of the following EXCEPT

The Toronto Stock Exchange is a

Holders of equity capital

Bonds that can be redeemed at par at the option of their holders either on a specific date after the date of issue and every 1 to 5 years thereafter or when and if the firm takes specified actions such as being acquired, acquiring another company, or issuing a large amount of additional debt are called

Which of the following financial institutions would b e the smallest in size?

Which of the following parties will likely benefit the most from the underpricing of a new common stock issue?

On ___________, the stated interest rate is adjusted periodically within stated limits in response tochanges in specified money or capital market rates.