An index consists of the following securities. What is the value-weighted index return? $\begin{array}{cccc} \text { Value-weighted } & \text { Shares } & \text { Beginning Share } & \text { Ending Share } \\ \text { Stock } & \text { Outstanding } & \text { Price } & \text { Price } \\ \text { T } & 5,000 & \$ 20 & \$ 28 \\ \text { Z } & 2,000 & \$ 38 & \$ 40 \end{array}$

A) 12.75% B) 15.00% C) 16.50% D) 18.75% E) 25.00% A) 12.75% B) 15.00% C) 16.50% D) 18.75% E) 25.00%

An order book displays the following information: $\begin{array}{cccc} \text { Buy Orders}& \text { Sell Orders}\\ \hline \text { Shares }\quad \text { Price } & \text { Shares } \quad \text { Price } \\ 200 \quad \$ 18.15 & 100 \quad \$ 18.17 \\ 300 \quad \$ 18.14 & 500 \quad \$ 18.18 \\ 100 \quad \$ 18.14 & 100 \quad \$ 18.19 \end{array}$ You place a market order to sell 200 shares. At what price will your order be executed?

A) $18.13 B) $18.14 C) $18.15 D) $18.16 E) $18.17 A) $18.13 B) $18.14 C) $18.15 D) $18.16 E) $18.17

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? \[\begin{array} { c c c c } \text { Stock } & \text { Shares Outstanding } & \text { Begin Erice } & \text { End Price } \\ \text { A } & 4,500 & \$ 20 & \$ 25 \\ \text { B } & 7,000 & \$ 15 & \$ 12 \\ \mathbf { C } & 3,000 & \$ 28 & \$ 35 \end{array}\]

A) 11.11% B) 12.50% C) 14.29% D) 15.32% E) 16.32% A) 11.11% B) 12.50% C) 14.29% D) 15.32% E) 16.32%

Exam 5: The Stock Market

An index consists of the following securities. What is the value-weighted index return? Value-weighted Shares Beginning Share Ending Share Stock Outstanding Price Price T 5,000 \ 20 \ 28 Z 2,000 \ 38 \ 40

(Multiple Choice)

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Question 21

Which one of the following transactions occurs in the primary market?

(Multiple Choice)

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Question 22

A best efforts IPO underwriting consisted of 2.0 million shares at an offer price of $24 a share. The underwriter's fee was set at 5.95%. How many shares were sold if the issuer received $39,900,000?

(Multiple Choice)

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Question 23

An order book displays the following information: Buy Orders Sell Orders Shares Price Shares Price 200\ 18.15 100\ 18.17 300\ 18.14 500\ 18.18 100\ 18.14 100\ 18.19 You place a market order to sell 200 shares. At what price will your order be executed?

(Multiple Choice)

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Question 24

Which one of the following orders is frequently used as a means to limit losses resulting from a short sale?

(Multiple Choice)

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Question 25

An NYSE member who trades only for his or her own account is called a(n):

(Multiple Choice)

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Question 26

How long is the "lock-up" period that is commonly found in an IPO underwriting contract?

(Multiple Choice)

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Question 27

When an underwriting syndicate purchases an entire issue of new securities and accepts the risk of unsold shares, the underwriting is known as a ________ underwriting.

(Multiple Choice)

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Question 28

The DJIA is an index of the stock prices of ________ firms.

(Multiple Choice)

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Question 29

A company may sell ________ to raise capital in addition to its sale of equity and debt.

(Multiple Choice)

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Question 30

Which of the following is the practice of raising small amounts of capital from a large number of people?

(Multiple Choice)

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Question 31

Which one of the following is the federal agency that regulates the financial markets in the U.S.?

(Multiple Choice)

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Question 32

Which one of the following statements concerning NASDAQ is correct?

(Multiple Choice)

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Question 33

An index is valued on a daily basis. However, some stocks in this particular index have not traded recently. As a result, this index suffers from index:

(Multiple Choice)

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Question 34

In 2007, NYSE Holdings merged with which one of the following?

(Multiple Choice)

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Question 35

Kelly wants to sell 600 shares of DeLuxe stock at the going market price if the stock price falls to $42 a share. Which type of order should she place?

(Multiple Choice)

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Question 36

Which of the following types of indexes is a stock market index in which stocks are held in proportion to their share price?

(Multiple Choice)

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Question 37

A trading floor broker:

(Multiple Choice)

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Question 38

NASDAQ has which of the following characteristics? I. trading floor II. computer network III. specialist system IV. multiple market makers

(Multiple Choice)

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Question 39

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? Stock Shares Outstanding Begin Erice End Price A 4,500 \ 20 \ 25 B 7,000 \ 15 \ 12 3,000 \ 28 \ 35

(Multiple Choice)

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Question 40

Exam 5: The Stock Market

An index consists of the following securities. What is the value-weighted index return? Value-weighted Shares Beginning Share Ending Share Stock Outstanding Price Price T 5,000 \ 20 \ 28 Z 2,000 \ 38 \ 40

Which one of the following transactions occurs in the primary market?

A best efforts IPO underwriting consisted of 2.0 million shares at an offer price of $24 a share. The underwriter's fee was set at 5.95%. How many shares were sold if the issuer received $39,900,000?

An order book displays the following information: Buy Orders Sell Orders Shares Price Shares Price 200\ 18.15 100\ 18.17 300\ 18.14 500\ 18.18 100\ 18.14 100\ 18.19 You place a market order to sell 200 shares. At what price will your order be executed?

Which one of the following orders is frequently used as a means to limit losses resulting from a short sale?

An NYSE member who trades only for his or her own account is called a(n):

How long is the "lock-up" period that is commonly found in an IPO underwriting contract?

When an underwriting syndicate purchases an entire issue of new securities and accepts the risk of unsold shares, the underwriting is known as a ________ underwriting.

The DJIA is an index of the stock prices of ________ firms.

A company may sell ________ to raise capital in addition to its sale of equity and debt.

Which of the following is the practice of raising small amounts of capital from a large number of people?

Which one of the following is the federal agency that regulates the financial markets in the U.S.?

Which one of the following statements concerning NASDAQ is correct?

An index is valued on a daily basis. However, some stocks in this particular index have not traded recently. As a result, this index suffers from index:

In 2007, NYSE Holdings merged with which one of the following?

Kelly wants to sell 600 shares of DeLuxe stock at the going market price if the stock price falls to $42 a share. Which type of order should she place?

Which of the following types of indexes is a stock market index in which stocks are held in proportion to their share price?

A trading floor broker:

NASDAQ has which of the following characteristics? I. trading floor II. computer network III. specialist system IV. multiple market makers

An index consists of the following securities and has an index divisor of 3.0. What is the price-weighted index return? Stock Shares Outstanding Begin Erice End Price A 4,500 \ 20 \ 25 B 7,000 \ 15 \ 12 3,000 \ 28 \ 35

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