Exam 2: Securities Markets and Transactions

Gerry bought 100 shares of stock for $30.00 per share on 70% margin.Assume Gerry holds the stock for one year and that his interest costs will be $45 over the holding period.Gerry also received dividends amounting to $0.30 per share.Ignoring commissions, what is his percentage return on invested capital if he sells the stock for $34 a share?

(Multiple Choice)

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Question 81

Which of the following statements about short selling is (are)true? I.Short selling requires an initial margin deposit. II.Short sellers begin a transaction with a sale and end it with a purchase. III.Short sellers profit when the stock prices rises. IV.Short selling can be a risky strategy.

(Multiple Choice)

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Question 82

The dominant options exchange is the

(Multiple Choice)

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Question 83

The governmental agency that oversees the capital markets is the

(Multiple Choice)

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Question 84

SEC regulations strictly prohibit trading outside the normal hours of 9:30 A.m.to 4:00 P.M.EST.

(True/False)

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Question 85

Insider trading is the use of nonpublic information about a security to gain a profit.

(True/False)

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Question 86

Securities that trade in the over-the-counter market are called unlisted securities.

(True/False)

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Question 87

A market maker brings together buyers and sellers in an auction market.

(True/False)

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Question 88

American investors can participate in international stock markets by

(Multiple Choice)

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Question 89

The great majority of transactions on the NYSE are executed

(Multiple Choice)

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Question 90

The automated system for trading highly active OTC securities is the

(Multiple Choice)

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Question 91

Stocks and bonds are traded in

(Multiple Choice)

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Question 92

Federal laws that control the sale of securities are called blue sky laws.

(True/False)

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Question 93

Short selling involves the sale of depreciated stock at a price below the amount borrowed on margin.

(True/False)

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Question 94

Losses on a stock purchase are limited to the price of the stock, but losses on a short sale are potentially unlimited.

(True/False)

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Question 95

Federal securities laws are designed to protect financial institutions.

(True/False)

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Question 96

The purpose of the Intermarket Trading System is to link major exchanges and dealer markets to

(Multiple Choice)

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Question 97

Short-term securities are bought and sold in the

(Multiple Choice)

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Question 98

Explain the role of investment bankers and brokerage firms in the issuance of new securities.

(Essay)

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Question 99

The price an individual investor will pay to purchase a stock in the OTC market is the

(Multiple Choice)

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Question 100

Showing 81 - 100 of 114

Which of the following statements about short selling is (are)true? I.Short selling requires an initial margin deposit. II.Short sellers begin a transaction with a sale and end it with a purchase. III.Short sellers profit when the stock prices rises. IV.Short selling can be a risky strategy.

The dominant options exchange is the

The governmental agency that oversees the capital markets is the

SEC regulations strictly prohibit trading outside the normal hours of 9:30 A.m.to 4:00 P.M.EST.

Insider trading is the use of nonpublic information about a security to gain a profit.

Securities that trade in the over-the-counter market are called unlisted securities.

A market maker brings together buyers and sellers in an auction market.

American investors can participate in international stock markets by

The great majority of transactions on the NYSE are executed

The automated system for trading highly active OTC securities is the

Stocks and bonds are traded in

Federal laws that control the sale of securities are called blue sky laws.

Short selling involves the sale of depreciated stock at a price below the amount borrowed on margin.

Losses on a stock purchase are limited to the price of the stock, but losses on a short sale are potentially unlimited.

Federal securities laws are designed to protect financial institutions.

The purpose of the Intermarket Trading System is to link major exchanges and dealer markets to

Short-term securities are bought and sold in the

Explain the role of investment bankers and brokerage firms in the issuance of new securities.

The price an individual investor will pay to purchase a stock in the OTC market is the

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