Exam 5: Financial Markets, Institutions, and Securities

All of the following are examples of organized stock exchanges EXCEPT

The ___________feature allows the bondholder to change each bond into a stated number of shares of stock.

Firms that require funds from external sources can obtain them in one of the following waysEXCEPT

The ease of salability of marketable securities refers to the

All of the following are characteristics of preferred stock EXCEPT

In utilizing a(n)___________ the issuer can annually deduct the current year's interest accrual without having to actually pay the interest until the bond matures.

The purpose of the restrictive debt covenant that imposes fixed assets restrictions is to

The depth of a market is determined by

Long-term debt instruments used by both government and business are known as

General Motors sells 100,000 shares of common stock to investors at large.

Why might the stock price drop when new equity issues are announced?

A___________ is not a specific security but an arrangement whereby a bank or security dealer sellsspecific marketable securities to a firm and agrees to repurchase the securities in the future.

High-risk, high-yield junk bonds have declined in popularity during the early 1990s due to

The legal contract setting forth the terms and provisions of a corporate bond is

As a form of financing, equity capital

Securities exchanges create efficient markets that do all of the following EXCEPT

All of the following securities are government issues EXCEPT

Convertible bonds are normally

A ___________is a type of financial intermediary that pools savings of individuals and makes them available to business and government demanders. Funds are obtained through the sale of shares.

___________are funds denominated in Canadian dollars and deposited in banks located outsideCanada.