FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Using Securities Markets for Financing and Investing Opportunities

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 201

Multiple Choice

Review LaterAdd Note

Review Later

A ________ is a registered representative acting as an intermediary to buy and sell securities for clients.

A) certified stock underwriter
B) stockbroker
C) securities banker
D) trading accountant

E) B) and D)
F) All of the above

Correct Answer

verified

Show Answer

Question 202

True/False

Review LaterAdd Note

Review Later

Stock exchanges compete with each other for the listing of a corporation's stock.

A) True
B) False

Correct Answer

verified

Show Answer

Question 203

True/False

Review LaterAdd Note

Once a stock exchange agrees to list a company,the firm can be assured that it will always be listed by that exchange.

As a legal contract,bonds issued by different companies carry the same level of risk.

After owning a Cordero Company bond for five years,Gabrielle exercised an option that allowed her to exchange her bond for 20 shares of the company stock.Gabrielle owned a:

Bonds represent a major source of long-term financing.What is a bond? Explain the major elements that must be in a bond issue.

Lupe's stockbroker called to inform Lupe of a margin call that requires that she pay $1,000.This indicates that the value of Lupe's stock has:

The stock of companies that fail to meet a stock exchange's minimum requirements can be delisted.

A corporate bond provides the owner with the right to sell the bond to other investors at any time during the life of the bond.

Creating a portfolio by buying several different types of investments to spread the risk of investing is called _______________.

Yesterday,Alberto purchased on margin 100 shares of stock in the ABC Corporation for $40 per share.Today,the price of the shares dropped by $10 per share.Alberto expects his broker to issue a margin call.

Corporations receive the proceeds for the sale of their stock in:

A blue chip stock represents a highly speculative stock investment.

Bondholders represent creditors of a firm.

When investing in mutual funds,the investor will buy shares of a fund that consists of stocks or bonds,the fund will hold shares of many companies.

An organization whose members can buy and sell securities for companies and investors is known as a:

When given a choice,businesses prefer to obtain long-term financing through retained earnings or by borrowing from a lending institution such as a bank.

The stock of well-known,high quality firms,such as Coca-Cola,General Electric,and Procter & Gamble,fit the characteristics of ________ stocks,because investors can almost always be assured a dividend and consistent stock price appreciation.

Bond prices in the newspaper or online are quoted as a percentage of their face value of $1000.If the bond price is 103.25,this bond's value =

Jennifer prefers corporate bonds as an investment option because investors always receive the face value of the bond whenever it is sold.