An order book displays the following information: $\begin{array}{cccc} \text { Buy Orders}& \text { Sell Orders}\\ \hline \text { Shares }\quad \text { Price } & \text { Shares } \quad \text { Price } \\ 100 \quad \$ 18.07& 100 \quad \$ 18.11 \\ 500 \quad \$ 18.06 & 500 \quad \$ 18.12 \\ 300 \quad \$ 18.05 & 100 \quad \$ 18.12 \end{array}$ You place an order to sell 100 shares. At what price will your order be executed?

A) $18.05 B) $18.06 C) $18.07 D) $18.11 E) $18.12 A) $18.05 B) $18.06 C) $18.07 D) $18.11 E) $18.12

Moonlight is offering 1,100 shares in a Dutch auction IPO. The following bids have been received: \[\begin{array} { c c c } \text { Bidder } & \text { Ouantity } & \text { Price } \\ \text { A } & 200 & \$ 18 \\ \text { B } & 100 & 18 \\ \text { C } & 400 & 17 \\ \text { D } & 400 & 16 \\ \text { E } & 200 & 16 \end{array}\] How much will Moonlight receive from this offering if the underwriter's fee is 6.5%?

A) $12,905.75 B) $13,440.60 C) $15,184.25 D) $16,456.00 E) $19,095.30 A) $12,905.75 B) $13,440.60 C) $15,184.25 D) $16,456.00 E) $19,095.30

Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: \[\begin{array} { c c c } \text { Bidder } & \text { Ouantity } & \text { Price } \\ \text { A } & 100 & \$ 18 \\ \text { B } & 300 & 18 \\ \text { C } & 400 & 16 \\ \text { D } & 200 & 15 \\ \text { E } & 800 & 14 \end{array}\] How much will Bidder B have to spend to purchase all of the shares that have been allocated to him?

A) $4,050.00 B) $4,212.00 C) $4,800.00 D) $5,200.00 E) $5,700.00 A) $4,050.00 B) $4,212.00 C) $4,800.00 D) $5,200.00 E) $5,700.00

DT Metals is offering 700 shares in a Dutch auction IPO. The following bids have been received: \[\begin{array} { c c c } \text { Bidder } & \text { Ouantity } & \text { Price } \\ \text { A } & 100 & \$ 24 \\ \text { B } & 200 & 22 \\ \text { C } & 200 & 22 \\ \text { D } & 300 & 21 \\ \text { E } & 600 & 20 \end{array}\] What will the gross proceeds be for this offering?

A) $12,000 B) $12,600 C) $13,200 D) $13,300 E) $14,700 A) $12,000 B) $12,600 C) $13,200 D) $13,300 E) $14,700

Exam 5: The Stock Market

An order book displays the following information: Buy Orders Sell Orders Shares Price Shares Price 100\ 18.07 100\ 18.11 500\ 18.06 500\ 18.12 300\ 18.05 100\ 18.12 You place an order to sell 100 shares. At what price will your order be executed?

(Multiple Choice)

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Question 81

A firm that specializes in arranging financing for companies is called a(n):

(Multiple Choice)

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Question 82

An index has a market value of $695,200 at the beginning of the period and $735,000 at the end of the period. If you want the beginning index value to be 100, what is the ending index value?

(Multiple Choice)

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Question 83

Which of the following are common sources of venture capital? I. private individuals II. NASDAQ III. university endowment funds IV. insurance companies

(Multiple Choice)

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Question 84

NASDAQ dealers post which one of the following in addition to their bid and ask prices?

(Multiple Choice)

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Question 85

Which one of the following statements concerning the NYSE is correct?

(Multiple Choice)

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Question 86

You want to sell shares of stock at the current price. Which type of order should you place?

(Multiple Choice)

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Question 87

ML Underwriters paid an issuer $37,694,528 as IPO proceeds. The IPO offered 1.86 million shares of which 1.835 million were sold at an offer price of $21.85 a share. The underwriting spread was 7.25%. What type of underwriting was this?

(Multiple Choice)

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Question 88

The financing provided for new ventures that are frequently high-risk investments is referred to as "venture ________".

(Multiple Choice)

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Question 89

Stocks which are listed on the NYSE can:

(Multiple Choice)

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Question 90

Moonlight is offering 1,100 shares in a Dutch auction IPO. The following bids have been received: Bidder Ouantity Price A 200 \ 18 B 100 18 C 400 17 D 400 16 E 200 16 How much will Moonlight receive from this offering if the underwriter's fee is 6.5%?

(Multiple Choice)

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Question 91

Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: Bidder Ouantity Price A 100 \ 18 B 300 18 C 400 16 D 200 15 E 800 14 How much will Bidder B have to spend to purchase all of the shares that have been allocated to him?

(Multiple Choice)

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Question 92

Sam placed a limit order to sell 500 shares of stock at $14 a share. Which of the following does Sam know for sure? I. His order will execute but the time of execution is unknown. II. His order may never execute. III. He will receive exactly $7,000 if his order executes. IV. He could receive more, but not less, than $14 a share.

(Multiple Choice)

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Question 93

The off-exchange market in which exchange-listed securities trade is referred to as the ________ market.

(Multiple Choice)

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Question 94

After the trigger point is reached, a stop-loss order will be executed at the:

(Multiple Choice)

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Question 95

DT Metals is offering 700 shares in a Dutch auction IPO. The following bids have been received: Bidder Ouantity Price A 100 \ 24 B 200 22 C 200 22 D 300 21 E 600 20 What will the gross proceeds be for this offering?

(Multiple Choice)

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Question 96

A private equity fund: I. is set up as a limited partnership II. usually uses a 2/20 fee structure III. places no constraints on manager compensation IV. typically has a stated life of 7 to 10 years

(Multiple Choice)

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Question 97

Which one of the following statements related to the NYSE Hybrid market is correct?

(Multiple Choice)

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Question 98

When the issuer assumes the risk for any shares the underwriters cannot sell, the underwriting is known as a ________ underwriting.

(Multiple Choice)

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Question 99

The document that must be prepared in order to receive approval for a stock offering is called a(n):

(Multiple Choice)

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Question 100

An order book displays the following information: Buy Orders Sell Orders Shares Price Shares Price 100\ 18.07 100\ 18.11 500\ 18.06 500\ 18.12 300\ 18.05 100\ 18.12 You place an order to sell 100 shares. At what price will your order be executed?

A firm that specializes in arranging financing for companies is called a(n):

An index has a market value of $695,200 at the beginning of the period and $735,000 at the end of the period. If you want the beginning index value to be 100, what is the ending index value?

Which of the following are common sources of venture capital? I. private individuals II. NASDAQ III. university endowment funds IV. insurance companies

NASDAQ dealers post which one of the following in addition to their bid and ask prices?

Which one of the following statements concerning the NYSE is correct?

You want to sell shares of stock at the current price. Which type of order should you place?

ML Underwriters paid an issuer $37,694,528 as IPO proceeds. The IPO offered 1.86 million shares of which 1.835 million were sold at an offer price of $21.85 a share. The underwriting spread was 7.25%. What type of underwriting was this?

The financing provided for new ventures that are frequently high-risk investments is referred to as "venture ________".

Stocks which are listed on the NYSE can:

Moonlight is offering 1,100 shares in a Dutch auction IPO. The following bids have been received: Bidder Ouantity Price A 200 \ 18 B 100 18 C 400 17 D 400 16 E 200 16 How much will Moonlight receive from this offering if the underwriter's fee is 6.5%?

Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been received: Bidder Ouantity Price A 100 \ 18 B 300 18 C 400 16 D 200 15 E 800 14 How much will Bidder B have to spend to purchase all of the shares that have been allocated to him?

The off-exchange market in which exchange-listed securities trade is referred to as the ________ market.

After the trigger point is reached, a stop-loss order will be executed at the:

DT Metals is offering 700 shares in a Dutch auction IPO. The following bids have been received: Bidder Ouantity Price A 100 \ 24 B 200 22 C 200 22 D 300 21 E 600 20 What will the gross proceeds be for this offering?

A private equity fund: I. is set up as a limited partnership II. usually uses a 2/20 fee structure III. places no constraints on manager compensation IV. typically has a stated life of 7 to 10 years

Which one of the following statements related to the NYSE Hybrid market is correct?

When the issuer assumes the risk for any shares the underwriters cannot sell, the underwriting is known as a ________ underwriting.

The document that must be prepared in order to receive approval for a stock offering is called a(n):

A Brief History of Risk and Return

The Investment Process

Overview of Security Tips

Mutual Funds and Other Investment Companies

Common Stock Valuation

Stock Price Behavior and Market Efficiency

Behavioral Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Diversification and Risky Asset Allocation

Return, Risk, and the Security Market Line

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