Question 1

The law that requires investment advisers to register with the SEC is the

Accepted Answer

A)  Investment Company Act of 1940. 
B)  Investment Advisers Act of 1940. 
C)  Maloney Act of 1938. 
D)  Securities Act of 1933. 
A)  Investment Company Act of 1940. 
B)  Investment Advisers Act of 1940. 
C)  Maloney Act of 1938. 
D)  Securities Act of 1933.

Question 2

Participation in foreign stock markets is complicated and expensive for American investors.

Accepted Answer

A) True 
 B)False

Question 3

Stocks, bonds and mutual fund shares are bought and sold in the capital market.

Accepted Answer

A) True 
 B)False

Question 4

More than half the volume on the NYSE Amex results from trading in exchange traded funds and options.

Accepted Answer

A) True 
 B)False

Question 5

If a security is traded on the New York Stock Exchange and on a regional exchange, the security is said to be

Accepted Answer

A)  dual listed. 
B)  multiple listed. 
C)  traded in the second and third markets. 
D)  geographically diversified. 
A)  dual listed. 
B)  multiple listed. 
C)  traded in the second and third markets. 
D)  geographically diversified.

Question 6

In recent years, trading in secondary markets has increasingly become a function of

Accepted Answer

A)  securities exchanges. 
B)  dealer markets. 
C)  technology that by-passes both brokers and dealers. 
D)  broker-dealer markets using consolidated venues and technologies. 
A)  securities exchanges. 
B)  dealer markets. 
C)  technology that by-passes both brokers and dealers. 
D)  broker-dealer markets using consolidated venues and technologies.

Question 7

IPOs are relatively safe investments.

Accepted Answer

A) True 
 B)False

Question 8

Describe the initial public offering (IPO) process and explain the role of the underwriter, the Securities and Exchange Commission (SEC), and the red herring.

Accepted Answer

The underwriter is responsible for promo

Question 9

Most commodity futures are traded on the NYSE Amex.

Accepted Answer

A) True 
 B)False

Question 10

American Depositary Receipts represent

Accepted Answer

A)  receipts for dollar deposits in foreign banks. 
B)  receipts from foreign broker-dealers establishing ownership of foreign stocks. 
C)  receipts for the stocks of foreign companies held by banks in the companies' home country. 
D)  receipts for shares of foreign companies held by U.S. broker-dealers. 
A)  receipts for dollar deposits in foreign banks. 
B)  receipts from foreign broker-dealers establishing ownership of foreign stocks. 
C)  receipts for the stocks of foreign companies held by banks in the companies' home country. 
D)  receipts for shares of foreign companies held by U.S. broker-dealers.

Question 11

The major options exchanges such as the Chicago Board Options Exchange deal

Accepted Answer

A)  securities based options and custom options. 
B)  options, futures contracts and exchange traded funds. 
C)  exclusively in options based on listed securities. 
D)  only in options based on listed securities and commodity futures. 
A)  securities based options and custom options. 
B)  options, futures contracts and exchange traded funds. 
C)  exclusively in options based on listed securities. 
D)  only in options based on listed securities and commodity futures.

Question 12

Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The initial margin is 70%. The maintenance margin is 30%. How low can the price of each share of DEF be before Justin will have to add equity to his account?

Accepted Answer

A)  $4.73 
B)  $5.25 
C)  $6.75 
D)  $9.64 
A)  $4.73 
B)  $5.25 
C)  $6.75 
D)  $9.64

Question 13

Which of the following are provisions of the Sarbanes-Oxley Act of 2002?
I. an oversight board to monitor the accounting industry
II. tougher penalties for executives who commit corporate fraud
III. stricter prohibitions against insider trading
IV. guidelines for analysts conflicts of interest

Accepted Answer

A)  II and IV only 
B)  I, II and III only 
C)  I and IV only 
D)  I, II and IV only 
A)  II and IV only 
B)  I, II and III only 
C)  I and IV only 
D)  I, II and IV only

The law that requires investment advisers to register with the SEC is the

Participation in foreign stock markets is complicated and expensive for American investors.

Stocks, bonds and mutual fund shares are bought and sold in the capital market.

More than half the volume on the NYSE Amex results from trading in exchange traded funds and options.

If a security is traded on the New York Stock Exchange and on a regional exchange, the security is said to be

In recent years, trading in secondary markets has increasingly become a function of

IPOs are relatively safe investments.

Describe the initial public offering (IPO) process and explain the role of the underwriter, the Securities and Exchange Commission (SEC), and the red herring.

Most commodity futures are traded on the NYSE Amex.

American Depositary Receipts represent

The major options exchanges such as the Chicago Board Options Exchange deal

Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The initial margin is 70%. The maintenance margin is 30%. How low can the price of each share of DEF be before Justin will have to add equity to his account?

Which of the following are provisions of the Sarbanes-Oxley Act of 2002? I. an oversight board to monitor the accounting industry II. tougher penalties for executives who commit corporate fraud III. stricter prohibitions against insider trading IV. guidelines for analysts conflicts of interest

The Investment Environment

Investment Information and Securities Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Analyzing Common Stocks

Stock Valuation

Market Efficiency and Behavioral Finance

Fixed-Income Securities

Bond Valuation

Mutual Funds and Exchange-Traded Funds

Managing Your Own Portfolio

Options: Puts and Calls

Futures Markets and Securities

Filters

Exam 2: Securities Markets and Transactions

The law that requires investment advisers to register with the SEC is the

Participation in foreign stock markets is complicated and expensive for American investors.

Stocks, bonds and mutual fund shares are bought and sold in the capital market.

More than half the volume on the NYSE Amex results from trading in exchange traded funds and options.

If a security is traded on the New York Stock Exchange and on a regional exchange, the security is said to be

In recent years, trading in secondary markets has increasingly become a function of

IPOs are relatively safe investments.

Describe the initial public offering (IPO) process and explain the role of the underwriter, the Securities and Exchange Commission (SEC), and the red herring.

Most commodity futures are traded on the NYSE Amex.

American Depositary Receipts represent

The major options exchanges such as the Chicago Board Options Exchange deal

Justin just made a margin purchase of 100 shares of DEF Corp. for $22.50 per share. The initial margin is 70%. The maintenance margin is 30%. How low can the price of each share of DEF be before Justin will have to add equity to his account?

Which of the following are provisions of the Sarbanes-Oxley Act of 2002? I. an oversight board to monitor the accounting industry II. tougher penalties for executives who commit corporate fraud III. stricter prohibitions against insider trading IV. guidelines for analysts conflicts of interest

The Investment Environment

Investment Information and Securities Transactions

Return and Risk

Modern Portfolio Concepts

Common Stocks

Analyzing Common Stocks

Stock Valuation

Market Efficiency and Behavioral Finance

Fixed-Income Securities

Bond Valuation

Mutual Funds and Exchange-Traded Funds

Managing Your Own Portfolio

Options: Puts and Calls

Futures Markets and Securities

Filters