Question 1

A closed‑end investment company​

Accepted Answer

A)  ​has a fixed capital structure 
B)  issues new shares when an individual invests​ 
C)  redeems its shares​ 
D)  charges a loading fee​ 
A)  ​has a fixed capital structure 
B)  issues new shares when an individual invests​ 
C)  redeems its shares​ 
D)  charges a loading fee​

Question 2

An exchange-traded fund tends to sell for a large discount from its net asset value.​

Accepted Answer

A) True 
 B)False

Question 3

An index fund based on the S&P 500​

Accepted Answer

A)  ​seeks to match the stock market 
B)  seeks to outperform the stock market​ 
C)  is illustrative of a no load fund​ 
D)  is illustrative of a closed‑end fund​ 
A)  ​seeks to match the stock market 
B)  seeks to outperform the stock market​ 
C)  is illustrative of a no load fund​ 
D)  is illustrative of a closed‑end fund​

Question 4

An index fund limits its portfolio to​

Accepted Answer

A)  ​high quality stock and bonds 
B)  stocks that respond to changes in inflation​ 
C)  stocks of firms in a particular industry​ 
D)  stocks included in an aggregate measure of the stock market​ 
A)  ​high quality stock and bonds 
B)  stocks that respond to changes in inflation​ 
C)  stocks of firms in a particular industry​ 
D)  stocks included in an aggregate measure of the stock market​

Question 5

When an individual wants to remove funds from a mutual fund, that investor sells the shares (i.e., redeems) back to the fund.​

Accepted Answer

A) True 
 B)False

A closed‑end investment company

An exchange-traded fund tends to sell for a large discount from its net asset value.

An index fund based on the S&P 500

An index fund limits its portfolio to

When an individual wants to remove funds from a mutual fund, that investor sells the shares (i.e., redeems) back to the fund.

The Role of Financial Markets and Financial Intermediaries

Investment Banking

Securities Markets

The Federal Reserve

International Currency Flows

The Time Value of Money

Risk and Its Measurement

Analysis of Financial Statements

The Features of Stock

Stock Valuation

The Features of Long-Term Debt - Bonds

Bond Pricing and Yields

Preferred Stock

Convertile Securities

Investment Returns

Forms of Businss and Corporate Taxation

Break-Even Analysis and the Payback Period

Leverage

Cost of Capital

Capital Budgeting

Forecasting

Cash Budgeting

Management of Current Assets

Management of Short-Term Liabilities

Intermediate-Term Debt and Leasing

Options: Puts and Calls

Futures and Swaps

Filters

Exam 17: Investment Companies