Question 1

A firm that specializes in arranging financing for companies is called a(n):

Accepted Answer

A)  floor broker. 
B)  investment banking firm. 
C)  investment dealer. 
D)  private broker. 
E)  marketing firm. 
A)  floor broker. 
B)  investment banking firm. 
C)  investment dealer. 
D)  private broker. 
E)  marketing firm.

Question 2

Kelly wants to sell 600 shares of DeLuxe stock at the going market price after the stock reaches $42 a share.Which type of order should she place?

Accepted Answer

A)  stop 
B)  limit 
C)  market 
D)  fixed 
E)  loss 
A)  stop 
B)  limit 
C)  market 
D)  fixed 
E)  loss

Question 3

A price-weighted index consists of stocks A,B,and C which are priced at $38,$21,and $26 a share,respectively.The current index divisor is 2.7.What will the new index divisor be if stock B undergoes a 3-for-1 stock split?

Accepted Answer

A)  2.1684 
B)  2.2553 
C)  2.5890 
D)  2.7000 
E)  3.1447 
A)  2.1684 
B)  2.2553 
C)  2.5890 
D)  2.7000 
E)  3.1447

Question 4

Which one of the following statements concerning NASDAQ is correct?

Accepted Answer

A)  The NASDAQ Capital Market has the most stringent listing requirements of any of the NASDAQ companies. 
B)  NASDAQ is actually comprised of four separate markets. 
C)  Microsoft shares are listed on the NASDAQ Global Market. 
D)  NASDAQ has more total dollar volume of trading than does the NYSE. 
E)  There are more companies listed on NASDAQ than on NYSE. 
A)  The NASDAQ Capital Market has the most stringent listing requirements of any of the NASDAQ companies. 
B)  NASDAQ is actually comprised of four separate markets. 
C)  Microsoft shares are listed on the NASDAQ Global Market. 
D)  NASDAQ has more total dollar volume of trading than does the NYSE. 
E)  There are more companies listed on NASDAQ than on NYSE.

Question 5

After the trigger point is reached,a stop-loss order will be executed at the:

Accepted Answer

A)  trigger price. 
B)  stop price. 
C)  trigger price or better. 
D)  stop price or better. 
E)  market price. 
A)  trigger price. 
B)  stop price. 
C)  trigger price or better. 
D)  stop price or better. 
E)  market price.

Question 6

When stocks are held in an index in proportion to their total company market value,the index is:

Accepted Answer

A)  dollar-weighted. 
B)  front-weighted. 
C)  back-weighted. 
D)  price-weighted. 
E)  value-weighted. 
A)  dollar-weighted. 
B)  front-weighted. 
C)  back-weighted. 
D)  price-weighted. 
E)  value-weighted.

Question 7

Under the provisions of a general cash offer,shares of stock are offered to:

Accepted Answer

A)  underwriters on a guaranteed sale basis only. 
B)  current shareholders prior to being offered to the general public. 
C)  institutional investors only. 
D)  the issuer's employees on a cash purchase basis only. 
E)  the general public on a "first-come" basis. 
A)  underwriters on a guaranteed sale basis only. 
B)  current shareholders prior to being offered to the general public. 
C)  institutional investors only. 
D)  the issuer's employees on a cash purchase basis only. 
E)  the general public on a "first-come" basis.

A firm that specializes in arranging financing for companies is called a(n):

Kelly wants to sell 600 shares of DeLuxe stock at the going market price after the stock reaches $42 a share.Which type of order should she place?

A price-weighted index consists of stocks A,B,and C which are priced at $38,$21,and $26 a share,respectively.The current index divisor is 2.7.What will the new index divisor be if stock B undergoes a 3-for-1 stock split?

Which one of the following statements concerning NASDAQ is correct?

After the trigger point is reached,a stop-loss order will be executed at the:

When stocks are held in an index in proportion to their total company market value,the index is:

Under the provisions of a general cash offer,shares of stock are offered to:

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

A firm that specializes in arranging financing for companies is called a(n):

Kelly wants to sell 600 shares of DeLuxe stock at the going market price after the stock reaches $42 a share.Which type of order should she place?

A price-weighted index consists of stocks A,B,and C which are priced at $38,$21,and $26 a share,respectively.The current index divisor is 2.7.What will the new index divisor be if stock B undergoes a 3-for-1 stock split?

Which one of the following statements concerning NASDAQ is correct?

After the trigger point is reached,a stop-loss order will be executed at the:

When stocks are held in an index in proportion to their total company market value,the index is:

Under the provisions of a general cash offer,shares of stock are offered to:

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