Exam 5: The Stock Market

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?

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

Inside quotes are the:

An index has a market value of $689,400 at the beginning of the period and $722,009 at the end of the period. If you want the beginning index value to be 100, what is the ending index value?

Which one of the following orders is frequently used as a means to limit losses resulting from a short sale?

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

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

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

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?

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

The market where individual investors directly trade exchange-listed securities with other individual investors is referred to as the _____ market.

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

The document that must be prepared in order to receive approval for a stock offering is called a:

Cee The Moon is offering 700 shares in a Dutch auction IPO. The following bids have been received: How much will Cee The Moon receive from this offering if the underwriter's fee is 7 percent?

When a group of underwriters jointly work together to sell a new issue of securities, the underwriters form a(n):

Which one of the following statements concerning NASDAQ is correct?

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

Faith placed an order to sell 7,500 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?

The DJIA is an index of the stock prices of _____ firms.

The off-exchange market in which exchange-listed securities trade is referred to as the _____ market.