Question 1

In Canada, ___________ is the most influential provincial regulatory agency charged with regulating TSX listed securities and the companies.

Accepted Answer

A)  OSC 
B)  NYSE 
C)  CDIC 
D)  CDNX 
E)  MX 
A)  OSC 
B)  NYSE 
C)  CDIC 
D)  CDNX 
E)  MX A

Question 2

-If Purple, Indigo, and Violet are the only three stocks in the index, what is the equally-weighted index return?

Accepted Answer

A)  3.53% 
B)  4.03% 
C)  5.87% 
D)  7.11% 
E)  6.49% 
A)  3.53% 
B)  4.03% 
C)  5.87% 
D)  7.11% 
E)  6.49% E

Question 3

Which of the following is false regarding the NYSE and TSX?

Accepted Answer

A)  The purpose of both exchanges is to attract order flow. 
B)  Both exchanges are operated as a not-for-profit business. 
C)  They are owned by their members. 
D)  Both exchanges have physical trading locations. 
E)  Membership on both exchanges can be traded or sold. 
A)  The purpose of both exchanges is to attract order flow. 
B)  Both exchanges are operated as a not-for-profit business. 
C)  They are owned by their members. 
D)  Both exchanges have physical trading locations. 
E)  Membership on both exchanges can be traded or sold. D

Question 4

ABC Inc. has 130,000 shares of stock outstanding. You want to buy 400 of these shares. The price you will have to pay is the ___________ price.

Accepted Answer

A)  Margin 
B)  Bid 
C)  Ask 
D)  Broker 
E)  Spread 
A)  Margin 
B)  Bid 
C)  Ask 
D)  Broker 
E)  Spread

Question 5

The owner of a seat on the NYSE and the TSX is referred to as a:

Accepted Answer

A)  market maker. 
B)  dealer. 
C)  member. 
D)  specialist. 
E)  underwriter. 
A)  market maker. 
B)  dealer. 
C)  member. 
D)  specialist. 
E)  underwriter.

Question 6

Which of the following is false regarding DJIA?

Accepted Answer

A)  The divisor for the DJIA is approximately 0.14279922 
B)  The companies in the DJIA change from time to time 
C)  The divisor for the DJIA is adjusted for all splits and stock dividends 
D)  The DJIA is price weighted 
E)  None of the above 
A)  The divisor for the DJIA is approximately 0.14279922 
B)  The companies in the DJIA change from time to time 
C)  The divisor for the DJIA is adjusted for all splits and stock dividends 
D)  The DJIA is price weighted 
E)  None of the above

Question 7

-If Purple, Indigo, and Violet are the only three stocks in the index, what is the price-weighted index return?

Accepted Answer

A)  3.53% 
B)  4.03% 
C)  5.87% 
D)  7.11% 
E)  6.49% 
A)  3.53% 
B)  4.03% 
C)  5.87% 
D)  7.11% 
E)  6.49%

Question 8

The regulation stating that a short sale can only be executed if the last price change moved the market price of the security higher is called the ___________ rule.

Accepted Answer

A)  Cash order 
B)  Limit 
C)  Stop-limit 
D)  High-end 
E)  Uptick 
A)  Cash order 
B)  Limit 
C)  Stop-limit 
D)  High-end 
E)  Uptick

Question 9

Most stock indexes

Accepted Answer

A)  Have a constant divisor that is equal to the number of securities in the index 
B)  Are based on the 300 largest Canadian companies 
C)  Reflect both dividends and capital gains 
D)  Are based on 100 stocks 
E)  Are based on capital gains only 
A)  Have a constant divisor that is equal to the number of securities in the index 
B)  Are based on the 300 largest Canadian companies 
C)  Reflect both dividends and capital gains 
D)  Are based on 100 stocks 
E)  Are based on capital gains only

Question 10

-Silver and Platinum are the only two stocks in an index. You want the beginning index value to be 1,000. What is the ending index value for the value-weighted index?

Accepted Answer

A)  1,052.78 
B)  1,040.40 
C)  1,021.26 
D)  1,030.47 
E)  1,077.01 
A)  1,052.78 
B)  1,040.40 
C)  1,021.26 
D)  1,030.47 
E)  1,077.01

Question 11

Mukmiga Sports Entertainment is offering 700 shares in a Dutch auction IPO. Where the following bids have been received how many shares will Bidder D receive?
 $\begin{array}{c}
\begin{array}{c}
 \underline{\text { Bidder}}\
\mathrm{A} \
\mathrm{B} \
\mathrm{C} \
\mathrm{D} \
\mathrm{E}
\end{array}
\begin{array}{c}
 \underline{\text {Quantity}}\
100\
200\
200\
300\
600
\end{array}
\begin{array}{c}
 \underline{\text {Price}}\
 \$ 24 \
22\
22\
21\
20
\end{array}
\end{array}$

Accepted Answer

A)  100 
B)  200 
C)  300 
D)  700 
E)  0 
A)  100 
B)  200 
C)  300 
D)  700 
E)  0

Question 12

The off-exchange market for securities listed on the exchange is the ___________ market.

Accepted Answer

A)  Primary 
B)  Secondary 
C)  Third 
D)  Fourth 
E)  OTC 
A)  Primary 
B)  Secondary 
C)  Third 
D)  Fourth 
E)  OTC

Question 13

PING Inc. has 130,000 shares of stock outstanding. You want to buy 400 of these shares. The price you offer to pay is the ___________ price.

Accepted Answer

A)  Margin 
B)  Bid 
C)  Ask 
D)  Broker 
E)  Spread 
A)  Margin 
B)  Bid 
C)  Ask 
D)  Broker 
E)  Spread

Question 14

In a(n) ___________ new security issues of a seasoned equity are initially offered to existing shareholders.

Accepted Answer

A)  initial private offer. 
B)  private equity transaction. 
C)  rights offer. 
D)  preferred sharing offer. 
E)  follow-on offer. 
A)  initial private offer. 
B)  private equity transaction. 
C)  rights offer. 
D)  preferred sharing offer. 
E)  follow-on offer.

Question 15

What are the major differences between NASDAQ and the NYSE?

Accepted Answer

NASDAQ has multiple dealers for each sto

Question 16

With a market order:

Accepted Answer

A)  the broker attempts to get the best possible price during a lengthy period. 
B)  the investors must pay cash for the trades. 
C)  the broker tries to obtain the best possible price at the time the order is executed. 
D)  the broker should decide what is the reasonable price of the securities. 
E)  none of the above 
A)  the broker attempts to get the best possible price during a lengthy period. 
B)  the investors must pay cash for the trades. 
C)  the broker tries to obtain the best possible price at the time the order is executed. 
D)  the broker should decide what is the reasonable price of the securities. 
E)  none of the above

Question 17

-Yesterday, the DJIA closed at 12,051.96. The divisor is 0.13402801. Today, every one of the stock in the index increase in value by $0.50 a share. What is today's DJIA index?

Accepted Answer

A)  12,018.43 
B)  12,128.10 
C)  12,609.26 
D)  12,163.88 
E)  12,612.00 
A)  12,018.43 
B)  12,128.10 
C)  12,609.26 
D)  12,163.88 
E)  12,612.00

Question 18

An index has a market value of $6,450,000 at the beginning of the period and $5,986,000 at the end of the period. If you want the beginning index value to be 600, what is the ending index value?

Accepted Answer

A)  564.17 
B)  556.84 
C)  646.51 
D)  632.83 
E)  570.86 
A)  564.17 
B)  556.84 
C)  646.51 
D)  632.83 
E)  570.86

Question 19

Which of the following are the reasons why Investors use market indexes?
I. Market indexes are used as a benchmark to measure portfolio performance
II. Market indexes can be used to estimate the future movements of the indexes
III. Market indexes are helpful to determine relationship between past price movements and economic variable

Accepted Answer

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

Question 20

-If Silver and Platinum are the only two stocks in the index, what is the equal -weighted index return?

Accepted Answer

A)  5.89% 
B)  4.48% 
C)  5.95% 
D)  4.04% 
E)  5.36% 
A)  5.89% 
B)  4.48% 
C)  5.95% 
D)  4.04% 
E)  5.36%

In Canada, ___________ is the most influential provincial regulatory agency charged with regulating TSX listed securities and the companies.

-If Purple, Indigo, and Violet are the only three stocks in the index, what is the equally-weighted index return?

Which of the following is false regarding the NYSE and TSX?

ABC Inc. has 130,000 shares of stock outstanding. You want to buy 400 of these shares. The price you will have to pay is the ___________ price.

The owner of a seat on the NYSE and the TSX is referred to as a:

Which of the following is false regarding DJIA?

-If Purple, Indigo, and Violet are the only three stocks in the index, what is the price-weighted index return?

The regulation stating that a short sale can only be executed if the last price change moved the market price of the security higher is called the ___________ rule.

Most stock indexes

-Silver and Platinum are the only two stocks in an index. You want the beginning index value to be 1,000. What is the ending index value for the value-weighted index?

Mukmiga Sports Entertainment is offering 700 shares in a Dutch auction IPO. Where the following bids have been received how many shares will Bidder D receive? 100 200 200 300 600 \ 24 22 22 21 20

The off-exchange market for securities listed on the exchange is the ___________ market.

PING Inc. has 130,000 shares of stock outstanding. You want to buy 400 of these shares. The price you offer to pay is the ___________ price.

In a(n) ___________ new security issues of a seasoned equity are initially offered to existing shareholders.

What are the major differences between NASDAQ and the NYSE?

With a market order:

-Yesterday, the DJIA closed at 12,051.96. The divisor is 0.13402801. Today, every one of the stock in the index increase in value by $0.50 a share. What is today's DJIA index?

An index has a market value of $6,450,000 at the beginning of the period and $5,986,000 at the end of the period. If you want the beginning index value to be 600, what is the ending index value?

-If Silver and Platinum are the only two stocks in the index, what is the equal -weighted index return?

A Brief History of Risk and Return

Diversification and Risky Asset Allocation

The Investment Process

Overview of Security Types

Mutual Funds

Common Stock Valuation

Stock Price Behaviour and Market Efficiency

Behavioural Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Return, Risk and Security Management

Performance Evaluation and Risk Management

Options

Option Valuation

Futures Contracts

Projecting Cash Flow and Earnings

Corporate Bonds

Government Bonds and Mortgaged-Backed Securities

International Portfolio Investment

Filters

Exam 6: The Stock Market

In Canada, ___________ is the most influential provincial regulatory agency charged with regulating TSX listed securities and the companies.

-If Purple, Indigo, and Violet are the only three stocks in the index, what is the equally-weighted index return?

Which of the following is false regarding the NYSE and TSX?

ABC Inc. has 130,000 shares of stock outstanding. You want to buy 400 of these shares. The price you will have to pay is the ___________ price.

The owner of a seat on the NYSE and the TSX is referred to as a:

Which of the following is false regarding DJIA?

-If Purple, Indigo, and Violet are the only three stocks in the index, what is the price-weighted index return?

The regulation stating that a short sale can only be executed if the last price change moved the market price of the security higher is called the ___________ rule.

Most stock indexes

-Silver and Platinum are the only two stocks in an index. You want the beginning index value to be 1,000. What is the ending index value for the value-weighted index?

Mukmiga Sports Entertainment is offering 700 shares in a Dutch auction IPO. Where the following bids have been received how many shares will Bidder D receive? 100 200 200 300 600 \ 24 22 22 21 20

The off-exchange market for securities listed on the exchange is the ___________ market.

PING Inc. has 130,000 shares of stock outstanding. You want to buy 400 of these shares. The price you offer to pay is the ___________ price.

In a(n) ___________ new security issues of a seasoned equity are initially offered to existing shareholders.

What are the major differences between NASDAQ and the NYSE?

With a market order:

-Yesterday, the DJIA closed at 12,051.96. The divisor is 0.13402801. Today, every one of the stock in the index increase in value by $0.50 a share. What is today's DJIA index?

An index has a market value of $6,450,000 at the beginning of the period and $5,986,000 at the end of the period. If you want the beginning index value to be 600, what is the ending index value?

-If Silver and Platinum are the only two stocks in the index, what is the equal -weighted index return?

A Brief History of Risk and Return

Diversification and Risky Asset Allocation

The Investment Process

Overview of Security Types

Mutual Funds

Common Stock Valuation

Stock Price Behaviour and Market Efficiency

Behavioural Finance and the Psychology of Investing

Interest Rates

Bond Prices and Yields

Return, Risk and Security Management

Performance Evaluation and Risk Management

Options

Option Valuation

Futures Contracts

Projecting Cash Flow and Earnings

Corporate Bonds

Government Bonds and Mortgaged-Backed Securities

International Portfolio Investment

Filters