Exam 5: The Stock Market

Fay placed an order to sell 500 shares of stock she currently owned.As soon as the order reached the trading floor,the shares were immediately sold.Which type of order did Faith place?

Southaven Inc.is offering 1,000 shares in a Dutch auction IPO.The following bids have been received: How much will the firm receive from this offering if the underwriter's fee is 7.5 percent?

When the price of newly issued shares is determined by competitive bidding the underwriting is known as a ________ underwriting.

The profit a dealer makes on a purchase and resale of shares of stock is called the:

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.

Lucas wants to sell 9,000 shares of stock and places a market order.The floor broker is unable to arrange the sale with another floor broker so the specialist agrees to "stop" the stock.What has the specialist agreed to do?

The duties of a specialist include which of the following? I.maintain an orderly market II.offer a higher bid price than the floor brokers III.provide liquidity to the market IV.purchase all shares offered as limit sell

A trading floor broker:

Which one of the following statements related to stock indexes is correct?

An index consists of the following securities.What is the value-weighted index return?

How long is the "lock-up" period that is commonly found in an IPO underwriting contract?

Main Supplies is a publicly-traded firm with 250,000 shares of stock outstanding.If the firm issues an additional 10,000 shares,those shares will be referred to as a(n):

Reliant Underwriters has agreed to a firm commitment underwriting in which they will pay $36.75 million in exchange for 3 million shares of stock for an IPO offering.The offering price is expected to be $13.50 a share.How much will the underwriters earn if all of the shares can be sold?

In 2007,NYSE Holdings merged with which one of the following?

An owner of a trading license on the NYSE is called a:

DT Metals is offering 700 shares in a Dutch auction IPO.The following bids have been received: What will the gross proceeds be for this offering?

Mark just placed a stop limit order to sell 100 shares at $21 stop,$18 limit.Which one of the following statements is correct concerning this order if the current market price is $16?

The process of purchasing newly issued shares from the issuer and reselling those shares to the general public is called:

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

Which one of the following is the federal agency which regulates the financial markets in the U.S.?