Exam 15: Pricing and Distribution

Pathways Logistics is considering issuing bonds to help fund the purchase of land for a new production facility. Which statement best represents a potential disadvantage that Pathways should consider before committing to the bond sale?

________ are financial instruments such as stocks and bonds.

Hasan bought 10 shares of stock in a company two years ago. He feels like he hit the jackpot because the company has given him additional shares of stock at the end of four of the last five quarters. This additional stock can be best described as a

Ashlynn recently purchased a bond from a large corporation. The corporation is using proceeds from the bond sale to help pay for a new research facility. The corporation did not put up any of its assets as collateral, but Ashlynn still went ahead with the purchase since she believes the corporation is trustworthy and reliable. Ashlynn most likely purchased a(n) ________ bond.

Ofelia purchased shares of an investment fund over her lunch hour. She was pleased by the low fees that she paid and the fact that there wasn't a minimum investment requirement. Ofelia's investment was most likely a(n)

To determine a stock's ________, a company subtracts its liabilities from its assets, and the resulting figure, the shareholders' equity, is then divided by the number of shares that have been issued or sold of the stock.

Neelima has been working in the financial industry for more than 20 years. She helps regulate the different United States Stock Exchanges. Which federal agency does Neelima most likely work for?

Which statement about holders of preferred stock is true?

As companies that engage in buying and reselling new securities, Goldman Sachs and Morgan Stanley are examples of

What kind of bonds are popular with state and municipal governments because they mature on different dates, avoiding a cash flow problem?

Deepika is meeting with a financial advisor to discuss her desire to begin investing. The first area that the advisor wants to cover focuses on the amount of money Deepika wants to have when she reaches her desired retirement age. The advisor most likely wants to know about Deepika's

Which type of mutual fund focuses on investments that pay high dividends and interest?

Bernice, an employee of a large public company, has purchased part ownership in her company. Bernice has purchased

The NYSE and NASDAQ are both ________ securities markets.

What type of bond would be issued by a state government to pay for road repairs?

Standard and Poor's and Moody's Investors Service determine a bond's ________, or the quality and safety of a bond.

Rajya is very pleased by the money she has made from investing in securities. This income can also be described as the

Most securities sold through open auction are

Bashaud is interested in purchasing some long-term U.S. Treasury securities. He will most likely need to purchase them through

Jung-Hoon is comfortable taking on significant risk in order to maximize his savings. He primarily invests in start-ups and companies that focus on new technology. Which investment strategy does this best represent?