Question 1

The underwriting agreement commonly requires that the original shareholders will not sell their shares for a period of ___________ after the underwriting.

Accepted Answer

A)  One month 
B)  Three months 
C)  Six months 
D)  One year 
E)  One and half years 
A)  One month 
B)  Three months 
C)  Six months 
D)  One year 
E)  One and half years

Question 2

In 1977, the ___________ launched the world's first computer assisted trading system (CATS) and closed its trading floor to become the largest electronic North American exchange.

Accepted Answer

A)  New York Stock Exchange 
B)  Toronto Stock Exchange 
C)  Chicago Options Exchange 
D)  NASDAQ 
E)  Canadian Venture Exchange 
A)  New York Stock Exchange 
B)  Toronto Stock Exchange 
C)  Chicago Options Exchange 
D)  NASDAQ 
E)  Canadian Venture Exchange

Question 3

To research a new security issue, the major source of information for a potential investor is the

Accepted Answer

A)  Prospectus 
B)  Annual report 
C)  Registration statement 
D)  Proxy statement 
E)  None of the above 
A)  Prospectus 
B)  Annual report 
C)  Registration statement 
D)  Proxy statement 
E)  None of the above

Question 4

-If Purple, Indigo, and Violet are the only three stocks in the index, what is the value-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 5

An advertisement that indicates how to obtain a prospectus for securities that will be offered for sale is called a(n) _________.

Accepted Answer

A)  red herring 
B)  letter of interest 
C)  offer sheet 
D)  Spread 
E)  Tombstone 
A)  red herring 
B)  letter of interest 
C)  offer sheet 
D)  Spread 
E)  Tombstone

Question 6

A preliminary prospectus not yet approved by the OSC is referred to as a(n) ___________.

Accepted Answer

A)  Primary prospectus 
B)  Red herring 
C)  Best effort document 
D)  Initial prospectus 
E)  Draft 
A)  Primary prospectus 
B)  Red herring 
C)  Best effort document 
D)  Initial prospectus 
E)  Draft

Question 7

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

Accepted Answer

A)  Dutch auction 
B)  market-priced 
C)  seasoned 
D)  best efforts 
E)  rights 
A)  Dutch auction 
B)  market-priced 
C)  seasoned 
D)  best efforts 
E)  rights

Question 8

A(n) ________ buys and sells securities from their own inventory.

Accepted Answer

A)  commission broker 
B)  Broker 
C)  Underwriter 
D)  Dealer 
E)  investment banker 
A)  commission broker 
B)  Broker 
C)  Underwriter 
D)  Dealer 
E)  investment banker

Question 9

Entrepreneurs appearing on shows such as "The Dragon's Den" are seeking ___________ to help finance their start-up companies

Accepted Answer

A)  expansion leverage 
B)  leveraged positions 
C)  venture capital 
D)  start-up funds 
E)  junk bond issues 
A)  expansion leverage 
B)  leveraged positions 
C)  venture capital 
D)  start-up funds 
E)  junk bond issues

Question 10

-Yesterday, the DJIA closed at 11,608.20. The divisor is 0.13600214. Today, 29 of the stock in the index were unchanged. One stock rose from $76.20 a share yesterday to $77.40 a share today. What is the DJIA index value at the close of trading today?

Accepted Answer

A)  11,618.43 
B)  11,628.10 
C)  11,609.26 
D)  11,617.02 
E)  11,612.00 
A)  11,618.43 
B)  11,628.10 
C)  11,609.26 
D)  11,617.02 
E)  11,612.00

Question 11

The overall listing requirements for the TSX Venture Exchange are

Accepted Answer

A)  Less stricter than the Toronto Stock Exchange 
B)  More stricter than the Toronto Stock Exchange 
C)  The same as the Toronto Stock Exchange 
D)  The same as the New York Stock Exchange 
E)  The same as the NASDAQ 
A)  Less stricter than the Toronto Stock Exchange 
B)  More stricter than the Toronto Stock Exchange 
C)  The same as the Toronto Stock Exchange 
D)  The same as the New York Stock Exchange 
E)  The same as the NASDAQ

Question 12

The fourth market usually involves

Accepted Answer

A)  Large-block activities between institutional investors 
B)  Transaction in unlisted securities 
C)  Small trades between individual buyers and sellers 
D)  Transaction between broker and dealers 
E)  Only TSX members 
A)  Large-block activities between institutional investors 
B)  Transaction in unlisted securities 
C)  Small trades between individual buyers and sellers 
D)  Transaction between broker and dealers 
E)  Only TSX members

Question 13

The term ___________ is used to describe the financing for non-public companies.

Accepted Answer

A)  start-up funding 
B)  leveraged buyout 
C)  venture capital 
D)  capital market financing 
E)  private equity 
A)  start-up funding 
B)  leveraged buyout 
C)  venture capital 
D)  capital market financing 
E)  private equity

Question 14

In order to be listed on the NYSE and the TSX, a company must have at least ___________ and ___________ million shares, respectively, held in public hands.

Accepted Answer

A)  2.3, 1.5 
B)  1.5, 0.75 
C)  1.1, 1.0 
D)  2.0, 1.25 
E)  1.8, 1.5 
A)  2.3, 1.5 
B)  1.5, 0.75 
C)  1.1, 1.0 
D)  2.0, 1.25 
E)  1.8, 1.5

Question 15

Which of the following is true?

Accepted Answer

A)  Trading volumes on the Toronto Stock Exchange are the largest among all Canadian exchanges. 
B)  Montreal Exchange focuses on commodity futures trading. 
C)  Senior Canadian companies are listed at the Canadian Venture Exchange. 
D)  Financial derivative trading is handled by the Winnipeg Exchange. 
E)  All of the above 
A)  Trading volumes on the Toronto Stock Exchange are the largest among all Canadian exchanges. 
B)  Montreal Exchange focuses on commodity futures trading. 
C)  Senior Canadian companies are listed at the Canadian Venture Exchange. 
D)  Financial derivative trading is handled by the Winnipeg Exchange. 
E)  All of the above

Question 16

S&P/TSX Composite Index is a capitalization-weighted index of ___________ Canadian stocks.

Accepted Answer

A)  273 
B)  60 
C)  30 
D)  300 
E)  100 
A)  273 
B)  60 
C)  30 
D)  300 
E)  100

Question 17

ABC Inc. offered 2.5 million shares of stock at an offering price of $21 a share in an IPO. The sale was conducted on a best effort basis with a spread of 6% of the offering price. ABC received a total of $39,983,370 in proceeds from the sale. How many shares are sold?

Accepted Answer

A)  1,903,970 shares 
B)  2,025,500 shares 
C)  2,345,840 shares 
D)  2,550,000 shares 
E)  2,667,790 shares 
A)  1,903,970 shares 
B)  2,025,500 shares 
C)  2,345,840 shares 
D)  2,550,000 shares 
E)  2,667,790 shares

Question 18

The difference between the price a company receives for stock sold to the underwriter and the price of the stock charged in the primary market by the underwriter is known as the underwriter:

Accepted Answer

A)  profit. 
B)  gain. 
C)  return. 
D)  spread. 
E)  market. 
A)  profit. 
B)  gain. 
C)  return. 
D)  spread. 
E)  market.

Question 19

A(n) ___________ specializes in finding buyers for newly issued securities and helps arrange financing for companies.

Accepted Answer

A)  stock market 
B)  investment banking firm 
C)  stock exchange 
D)  open market 
E)  commercial bank 
A)  stock market 
B)  investment banking firm 
C)  stock exchange 
D)  open market 
E)  commercial bank

Question 20

An index is made up of Stock X, Stock Y, and Stock Z. The prices of the three stocks are $32, $97, and $53. If Stock Y undergoes a 2-for-1 stock split, what is the new index divisor?

Accepted Answer

A)  2.38133 
B)  2.01364 
C)  2.65873 
D)  2.20055 
E)  2.43150 
A)  2.38133 
B)  2.01364 
C)  2.65873 
D)  2.20055 
E)  2.43150

The underwriting agreement commonly requires that the original shareholders will not sell their shares for a period of ___________ after the underwriting.

In 1977, the ___________ launched the world's first computer assisted trading system (CATS) and closed its trading floor to become the largest electronic North American exchange.

To research a new security issue, the major source of information for a potential investor is the

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

An advertisement that indicates how to obtain a prospectus for securities that will be offered for sale is called a(n) _________.

A preliminary prospectus not yet approved by the OSC is referred to as a(n) ___________.

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

A(n) ________ buys and sells securities from their own inventory.

Entrepreneurs appearing on shows such as "The Dragon's Den" are seeking ___________ to help finance their start-up companies

-Yesterday, the DJIA closed at 11,608.20. The divisor is 0.13600214. Today, 29 of the stock in the index were unchanged. One stock rose from $76.20 a share yesterday to $77.40 a share today. What is the DJIA index value at the close of trading today?

The overall listing requirements for the TSX Venture Exchange are

The fourth market usually involves

The term ___________ is used to describe the financing for non-public companies.

In order to be listed on the NYSE and the TSX, a company must have at least _ and _ million shares, respectively, held in public hands.

Which of the following is true?

S&P/TSX Composite Index is a capitalization-weighted index of ___________ Canadian stocks.

ABC Inc. offered 2.5 million shares of stock at an offering price of $21 a share in an IPO. The sale was conducted on a best effort basis with a spread of 6% of the offering price. ABC received a total of $39,983,370 in proceeds from the sale. How many shares are sold?

The difference between the price a company receives for stock sold to the underwriter and the price of the stock charged in the primary market by the underwriter is known as the underwriter:

A(n) ___________ specializes in finding buyers for newly issued securities and helps arrange financing for companies.

An index is made up of Stock X, Stock Y, and Stock Z. The prices of the three stocks are $32, $97, and $53. If Stock Y undergoes a 2-for-1 stock split, what is the new index divisor?

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

The underwriting agreement commonly requires that the original shareholders will not sell their shares for a period of ___________ after the underwriting.

In 1977, the ___________ launched the world's first computer assisted trading system (CATS) and closed its trading floor to become the largest electronic North American exchange.

To research a new security issue, the major source of information for a potential investor is the

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

An advertisement that indicates how to obtain a prospectus for securities that will be offered for sale is called a(n) _________.

A preliminary prospectus not yet approved by the OSC is referred to as a(n) ___________.

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

A(n) ________ buys and sells securities from their own inventory.

Entrepreneurs appearing on shows such as "The Dragon's Den" are seeking ___________ to help finance their start-up companies

-Yesterday, the DJIA closed at 11,608.20. The divisor is 0.13600214. Today, 29 of the stock in the index were unchanged. One stock rose from $76.20 a share yesterday to $77.40 a share today. What is the DJIA index value at the close of trading today?

The overall listing requirements for the TSX Venture Exchange are

The fourth market usually involves

The term ___________ is used to describe the financing for non-public companies.

In order to be listed on the NYSE and the TSX, a company must have at least ___________ and ___________ million shares, respectively, held in public hands.

Which of the following is true?

S&P/TSX Composite Index is a capitalization-weighted index of ___________ Canadian stocks.

ABC Inc. offered 2.5 million shares of stock at an offering price of $21 a share in an IPO. The sale was conducted on a best effort basis with a spread of 6% of the offering price. ABC received a total of $39,983,370 in proceeds from the sale. How many shares are sold?

The difference between the price a company receives for stock sold to the underwriter and the price of the stock charged in the primary market by the underwriter is known as the underwriter:

A(n) ___________ specializes in finding buyers for newly issued securities and helps arrange financing for companies.

An index is made up of Stock X, Stock Y, and Stock Z. The prices of the three stocks are $32, $97, and $53. If Stock Y undergoes a 2-for-1 stock split, what is the new index divisor?

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

In order to be listed on the NYSE and the TSX, a company must have at least _ and _ million shares, respectively, held in public hands.