Question 1

A short interest ratio of 20 or higher indicates that many investors

Accepted Answer

A)  believe that the stock price is currently overvalued. 
B)  believe that the stock price is currently undervalued. 
C)  are selling the stock short. 
D)  both A and C 
A)  believe that the stock price is currently overvalued. 
B)  believe that the stock price is currently undervalued. 
C)  are selling the stock short. 
D)  both A and C

Question 2

The maintenance margin is the minimum amount of the margin that investors must maintain as a percentage of the stock's initial purchase price.

Accepted Answer

A) True 
 B)False

Question 3

____ from a broker requires the investor to put up additional collateral.

Accepted Answer

A)  maintenance margin 
B)  initial margin 
C)  margin call 
D)  trading halt 
A)  maintenance margin 
B)  initial margin 
C)  margin call 
D)  trading halt

Question 4

Which of the following statements is incorrect with respect to Regulation Fair Disclosure (FD)?

Accepted Answer

A)  It requires firms to disclose relevant information broadly to investors at the same time. 
B)  It restricts firms from providing analysts with information that they could use before the market is aware of the information. 
C)  It requires firms to announce a change in expected earnings to all investors and other interested parties at the same time. 
D)  It prohibits firms from communicating with analysts after a news announcement is made to all investors. 
E)  All of the above are correct with respect to Regulation FD. 
A)  It requires firms to disclose relevant information broadly to investors at the same time. 
B)  It restricts firms from providing analysts with information that they could use before the market is aware of the information. 
C)  It requires firms to announce a change in expected earnings to all investors and other interested parties at the same time. 
D)  It prohibits firms from communicating with analysts after a news announcement is made to all investors. 
E)  All of the above are correct with respect to Regulation FD.

Question 5

On May 6, 2010, the "__________" occurred, when stocks on the New York Stock Exchange (NYSE) declined by more than 9 percent on average before reversing and recovering most of those losses onthat same day. Much of the trading occurred within a half hour, which is thought to be the most volatile half hour in the history of the NYSE.

Accepted Answer

A)  credit cefault crisis 
B)  swap crisis 
C)  specialist crash 
D)  flash crash 
A)  credit cefault crisis 
B)  swap crisis 
C)  specialist crash 
D)  flash crash

A short interest ratio of 20 or higher indicates that many investors

The maintenance margin is the minimum amount of the margin that investors must maintain as a percentage of the stock's initial purchase price.

____ from a broker requires the investor to put up additional collateral.

Which of the following statements is incorrect with respect to Regulation Fair Disclosure (FD)?

Role of Financial Markets and Institutions

Determination of Interest Rates

Structure of Interest Rates

Functions of the Fed

Monetary Policy

Money Markets

Bond Markets

Bond Valuation and Risk

Mortgage Markets

Stock Offerings and Investor Monitoring

Stock Valuation and Risk

Financial Futures Markets

Options Markets

Swap Markets

Foreign Exchange Derivative Markets

Commercial Bank Operations

Bank Regulation

Bank Management

Bank Performance

Thrift Operations

Finance Company Operations

Mutual Fund Operations

Securities Operations

Insurance Operations

Pension Fund Operations

Filters

Exam 12: Market Microstructure and Strategies

A short interest ratio of 20 or higher indicates that many investors

The maintenance margin is the minimum amount of the margin that investors must maintain as a percentage of the stock's initial purchase price.

____ from a broker requires the investor to put up additional collateral.

Which of the following statements is incorrect with respect to Regulation Fair Disclosure (FD)?

Role of Financial Markets and Institutions

Determination of Interest Rates

Structure of Interest Rates

Functions of the Fed

Monetary Policy

Money Markets

Bond Markets

Bond Valuation and Risk

Mortgage Markets

Stock Offerings and Investor Monitoring

Stock Valuation and Risk

Financial Futures Markets

Options Markets

Swap Markets

Foreign Exchange Derivative Markets

Commercial Bank Operations

Bank Regulation

Bank Management

Bank Performance

Thrift Operations

Finance Company Operations

Mutual Fund Operations

Securities Operations

Insurance Operations

Pension Fund Operations

Filters