Question 1

An order to buy shares of stock at a stated price or less is called a ________ order.

Accepted Answer

A)  limit 
B)  stop 
C)  market 
D)  short 
E)  bid 
A)  limit 
B)  stop 
C)  market 
D)  short 
E)  bid

Question 2

Inside quotes are the:

Accepted Answer

A)  highest asked and lowest bid quotes offered by securities dealers. 
B)  highest bid and lowest asked quotes offered by securities dealers. 
C)  latest prices at which corporate insiders have purchased or sold securities. 
D)  bid and asked prices which are offered only to institutional traders or large private investors. 
E)  latest price at which a security traded. 
A)  highest asked and lowest bid quotes offered by securities dealers. 
B)  highest bid and lowest asked quotes offered by securities dealers. 
C)  latest prices at which corporate insiders have purchased or sold securities. 
D)  bid and asked prices which are offered only to institutional traders or large private investors. 
E)  latest price at which a security traded.

Question 3

An index consists of the following securities and has an index divisor of 2.0.What is the price-weighted index return?

Accepted Answer

A)  −1.69 percent 
B)  −0.78 percent 
C)  0.00 percent 
D)  0.92 percent 
E)  1.43 percent 
A)  −1.69 percent 
B)  −0.78 percent 
C)  0.00 percent 
D)  0.92 percent 
E)  1.43 percent

Question 4

An index consists of the following securities and has an index divisor of 3.0.What is the price-weighted index return?

Accepted Answer

A)  9.33 percent 
B)  10.35 percent 
C)  11.54 percent 
D)  12.33 percent 
E)  13.00 percent 
A)  9.33 percent 
B)  10.35 percent 
C)  11.54 percent 
D)  12.33 percent 
E)  13.00 percent

Question 5

A price-weighted index consists of stocks A,B,and C which are priced at $50,$35,and $15 a share,respectively.The current index divisor is 2.75.What will the new index advisor be if stock A undergoes a 5-for-1 stock split?

Accepted Answer

A)  0.40 
B)  0.65 
C)  1.00 
D)  1.65 
E)  1.85 
A)  0.40 
B)  0.65 
C)  1.00 
D)  1.65 
E)  1.85

Question 6

Which one of the following has the greatest duty to provide liquidity to the financial market?

Accepted Answer

A)  floor broker 
B)  independent broker 
C)  dealer 
D)  designated market maker 
E)  floor trader 
A)  floor broker 
B)  independent broker 
C)  dealer 
D)  designated market maker 
E)  floor trader

Question 7

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

Accepted Answer

A)  I and II only 
B)  III and IV only 
C)  I, III, and IV only 
D)  I, II, and IV only 
E)  I, II, III, and IV 
A)  I and II only 
B)  III and IV only 
C)  I, III, and IV only 
D)  I, II, and IV only 
E)  I, II, III, and IV

Question 8

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

Accepted Answer

A)  Dutch auction 
B)  partial 
C)  firm commitment 
D)  best efforts 
E)  pro-rata 
A)  Dutch auction 
B)  partial 
C)  firm commitment 
D)  best efforts 
E)  pro-rata

Question 9

The stocks listed on the Pink Sheets:

Accepted Answer

A)  are those stocks trading on the NASDAQ CAPITAL MARKET. 
B)  do not have to file financial statements with the SEC. 
C)  have all been delisted by the NYSE. 
D)  are the highest priced stocks listed on NASDAQ. 
E)  must file financial statements with the SEC but do not have to meet any listing requirements. 
A)  are those stocks trading on the NASDAQ CAPITAL MARKET. 
B)  do not have to file financial statements with the SEC. 
C)  have all been delisted by the NYSE. 
D)  are the highest priced stocks listed on NASDAQ. 
E)  must file financial statements with the SEC but do not have to meet any listing requirements.

Question 10

An NYSE Supplemental Liquidity Provider: I.can trade the same stocks as designated market makers
II)can trade only from offices outside the exchange
III)must quote bid or ask quotes a certain percent of the day
IV)is paid 30 cents per 100 shares traded

Accepted Answer

A)  I and II only 
B)  I, II and III only 
C)  I and III only 
D)  I, II, and IV only 
E)  I, II, III and IV 
A)  I and II only 
B)  I, II and III only 
C)  I and III only 
D)  I, II, and IV only 
E)  I, II, III and IV

Question 11

Mason Materials is offering 800 shares in a Dutch auction IPO.The following bids have been received:   How many shares will be allocated to Bidder A?

Accepted Answer

A)  0 
B)  80 
C)  125 
D)  145 
E)  200 
A)  0 
B)  80 
C)  125 
D)  145 
E)  200

Question 12

Which one of the following is the primary flaw of a price-weighted index?

Accepted Answer

A)  Price-weighted indexes ignore stock splits which affect stock prices. 
B)  The effect a company has on the index is dependent solely on the price per share. 
C)  Only a small number of stocks can be included in a price-weighted index. 
D)  If the number of shares outstanding of an index stock changes, the index divisor must be recomputed. 
E)  The index can only be computed once the trading day is over. 
A)  Price-weighted indexes ignore stock splits which affect stock prices. 
B)  The effect a company has on the index is dependent solely on the price per share. 
C)  Only a small number of stocks can be included in a price-weighted index. 
D)  If the number of shares outstanding of an index stock changes, the index divisor must be recomputed. 
E)  The index can only be computed once the trading day is over.

Question 13

Which one of the following prices will an investor pay to purchase shares of stock that are currently outstanding?

Accepted Answer

A)  issue 
B)  option 
C)  bid 
D)  ask 
E)  primary 
A)  issue 
B)  option 
C)  bid 
D)  ask 
E)  primary

Question 14

Which one of the following prices will an individual investor receive if he or she sells shares of Intel?

Accepted Answer

A)  bid 
B)  ask 
C)  issue 
D)  offer 
E)  Dutch 
A)  bid 
B)  ask 
C)  issue 
D)  offer 
E)  Dutch

Question 15

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

Accepted Answer

A)  The NYSE was created based on the Walnut Tree Agreement. 
B)  The average daily trading volume on the NYSE in 2007 was approximately one billion shares. 
C)  The NYSE and NASDAQ merged in 2007. 
D)  The NYSE is part of a firm that also operates a stock exchange in Amsterdam. 
E)  The NYSE merged with NASDAQ in 2007. 
A)  The NYSE was created based on the Walnut Tree Agreement. 
B)  The average daily trading volume on the NYSE in 2007 was approximately one billion shares. 
C)  The NYSE and NASDAQ merged in 2007. 
D)  The NYSE is part of a firm that also operates a stock exchange in Amsterdam. 
E)  The NYSE merged with NASDAQ in 2007.

Question 16

Trey currently owns 545,000 shares of ABC stock.He will sell those shares for $17.10 a share.He is also willing to purchase additional shares for $17.07 a share.Trey is a securities:

Accepted Answer

A)  broker. 
B)  representative. 
C)  underwriter. 
D)  floor broker. 
E)  dealer. 
A)  broker. 
B)  representative. 
C)  underwriter. 
D)  floor broker. 
E)  dealer.

Question 17

An order book displays the following information:   You place a market order to sell 500 shares.What will be the total you receive for your order?

Accepted Answer

A)  $9,070 
B)  $9,072 
C)  $9,075 
D)  $9,085 
E)  $9,090 
A)  $9,070 
B)  $9,072 
C)  $9,075 
D)  $9,085 
E)  $9,090

Question 18

Wilson just placed an order with his broker to purchase 500 of the outstanding shares of GE.This purchase will occur in which one of the following markets?

Accepted Answer

A)  primary 
B)  secondary 
C)  third 
D)  fourth 
E)  fifth 
A)  primary 
B)  secondary 
C)  third 
D)  fourth 
E)  fifth

Question 19

An order to sell that involves a preset trigger point is called a ________ order.

Accepted Answer

A)  limit 
B)  day 
C)  stop 
D)  short 
E)  market 
A)  limit 
B)  day 
C)  stop 
D)  short 
E)  market

Question 20

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

Accepted Answer

A)  capital 
B)  leverage 
C)  risk funds 
D)  funding 
E)  investing 
A)  capital 
B)  leverage 
C)  risk funds 
D)  funding 
E)  investing

An order to buy shares of stock at a stated price or less is called a ________ order.

Inside quotes are the:

An index consists of the following securities and has an index divisor of 2.0.What is the price-weighted index return?

An index consists of the following securities and has an index divisor of 3.0.What is the price-weighted index return?

A price-weighted index consists of stocks A,B,and C which are priced at $50,$35,and $15 a share,respectively.The current index divisor is 2.75.What will the new index advisor be if stock A undergoes a 5-for-1 stock split?

Which one of the following has the greatest duty to provide liquidity to the financial market?

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

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

The stocks listed on the Pink Sheets:

An NYSE Supplemental Liquidity Provider: I.can trade the same stocks as designated market makers II)can trade only from offices outside the exchange III)must quote bid or ask quotes a certain percent of the day IV)is paid 30 cents per 100 shares traded

Mason Materials is offering 800 shares in a Dutch auction IPO.The following bids have been received: How many shares will be allocated to Bidder A?

Which one of the following is the primary flaw of a price-weighted index?

Which one of the following prices will an investor pay to purchase shares of stock that are currently outstanding?

Which one of the following prices will an individual investor receive if he or she sells shares of Intel?

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

Trey currently owns 545,000 shares of ABC stock.He will sell those shares for $17.10 a share.He is also willing to purchase additional shares for $17.07 a share.Trey is a securities:

An order book displays the following information: You place a market order to sell 500 shares.What will be the total you receive for your order?

Wilson just placed an order with his broker to purchase 500 of the outstanding shares of GE.This purchase will occur in which one of the following markets?

An order to sell that involves a preset trigger point is called a ________ order.

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

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

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

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters

Exam 5: The Stock Market

An order to buy shares of stock at a stated price or less is called a ________ order.

Inside quotes are the:

An index consists of the following securities and has an index divisor of 2.0.What is the price-weighted index return?

An index consists of the following securities and has an index divisor of 3.0.What is the price-weighted index return?

A price-weighted index consists of stocks A,B,and C which are priced at $50,$35,and $15 a share,respectively.The current index divisor is 2.75.What will the new index advisor be if stock A undergoes a 5-for-1 stock split?

Which one of the following has the greatest duty to provide liquidity to the financial market?

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

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

The stocks listed on the Pink Sheets:

An NYSE Supplemental Liquidity Provider: I.can trade the same stocks as designated market makers II)can trade only from offices outside the exchange III)must quote bid or ask quotes a certain percent of the day IV)is paid 30 cents per 100 shares traded

Mason Materials is offering 800 shares in a Dutch auction IPO.The following bids have been received: How many shares will be allocated to Bidder A?

Which one of the following is the primary flaw of a price-weighted index?

Which one of the following prices will an investor pay to purchase shares of stock that are currently outstanding?

Which one of the following prices will an individual investor receive if he or she sells shares of Intel?

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

Trey currently owns 545,000 shares of ABC stock.He will sell those shares for $17.10 a share.He is also willing to purchase additional shares for $17.07 a share.Trey is a securities:

An order book displays the following information: You place a market order to sell 500 shares.What will be the total you receive for your order?

Wilson just placed an order with his broker to purchase 500 of the outstanding shares of GE.This purchase will occur in which one of the following markets?

An order to sell that involves a preset trigger point is called a ________ order.

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

A Brief History of Risk and Return

The Investment Process

Overview of Security Types

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

Performance Evaluation and Risk Management

Futures Contracts

Stock Options

Option Valuation

Projecting Cash Flow and Earnings

Corporate and Government Bonds

Global Economic Activity and Industry Analysis

Mortgage-Backed Securities

Filters