Question 1

Which of the following is a basis for a firm to be listed on the New York Stock Exchange?

Accepted Answer

A)  Headquarters in New York 
B)  Total value of outstanding stock 
C)  Industry in which the company operates 
D)  Number of shares of stock 
E)  Global operations 
A)  Headquarters in New York 
B)  Total value of outstanding stock 
C)  Industry in which the company operates 
D)  Number of shares of stock 
E)  Global operations

Question 2

Differentiate between market value and book value.

Accepted Answer

Market value is the current price of a s

Question 3

What is a stock's book value?

Accepted Answer

A)  The current price of a share of stock in the stock market 
B)  The average price of one share of stock over the past year 
C)  The face value of a share of stock, set by the issuing company's board of directors 
D)  The value expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  The value expressed by the number of stock shares issued by the board of directors 
A)  The current price of a share of stock in the stock market 
B)  The average price of one share of stock over the past year 
C)  The face value of a share of stock, set by the issuing company's board of directors 
D)  The value expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  The value expressed by the number of stock shares issued by the board of directors

Question 4

The New York Stock Exchange, the world's oldest electronic stock market, has orders gathered and executed exclusively on a computer network.

Accepted Answer

A) True 
 B)False

Question 5

According to rating services such as Moody's, what type of rating would a bond have if it was one of the safest investments possible, but produced lower returns?

Accepted Answer

A)  AAA 
B)  BBB 
C)  Caa 
D)  CCC 
E)  D 
A)  AAA 
B)  BBB 
C)  Caa 
D)  CCC 
E)  D

Question 6

What do angel investors receive in return for their investment?

Accepted Answer

Angel investors typically expect a sizab

Question 7

Which index focuses specifically on the smallest U.S. companies, based on market capitalization?

Accepted Answer

A)  S&P 500 
B)  Dow Jones Industrial Average 
C)  TradeStation 
D)  Russell 2000 
E)  NASDAQ Composite 
A)  S&P 500 
B)  Dow Jones Industrial Average 
C)  TradeStation 
D)  Russell 2000 
E)  NASDAQ Composite

Question 8

Before the Securities and Exchange Commission allows a firm to issue a public offering of new securities, what must be filed?

Accepted Answer

A)  Incidents of insider trading 
B)  A prospectus 
C)  The firm's history of reinvesting retained earning 
D)  A statement of equity financing to be used 
E)  The firm's corporate bond rating 
A)  Incidents of insider trading 
B)  A prospectus 
C)  The firm's history of reinvesting retained earning 
D)  A statement of equity financing to be used 
E)  The firm's corporate bond rating

Question 9

Which of the following is considered to be one of the riskiest of all investments?

Accepted Answer

A)  Blue-chip stock 
B)  Mutual funds 
C)  No-load funds 
D)  Common stock 
E)  Load funds 
A)  Blue-chip stock 
B)  Mutual funds 
C)  No-load funds 
D)  Common stock 
E)  Load funds

Question 10

Describe the differences between primary and secondary securities markets.

Accepted Answer

In primary securities markets, businesse

Question 11

Which of the following allows after-hours trading and protects traders' anonymity?

Accepted Answer

A)  National Association of Securities Dealers Automated Quotation (NASDAQ) 
B)  New York Stock Exchange (NYS
E)  
C)  Electronic Communication Networks (ECNs) 
D)  Standard & Poor's 500 
E)  Mutual funds 
A)  National Association of Securities Dealers Automated Quotation (NASDAQ) 
B)  New York Stock Exchange (NYS
E)  
C)  Electronic Communication Networks (ECNs) 
D)  Standard & Poor's 500 
E)  Mutual funds

Question 12

Explain how dividend yield and interest dividend yield are computed.

Accepted Answer

For annual dividend payments of $1.24 an

Question 13

The value of the Dow Jones Industrial Average (DJIA)has remained unchanged in recent years.

Accepted Answer

A) True 
 B)False

Question 14

When is a company susceptible to a hostile takeover?

Accepted Answer

A)  When a bull market is in effect 
B)  When stock prices are high, but assets are decreasing 
C)  When stocks are low priced, but assets have high value 
D)  When the international market is in recession 
E)  When angel investors demand repayment of their venture capital 
A)  When a bull market is in effect 
B)  When stock prices are high, but assets are decreasing 
C)  When stocks are low priced, but assets have high value 
D)  When the international market is in recession 
E)  When angel investors demand repayment of their venture capital

Question 15

What can an angel investor offer to small businesses when the small business doesn't have enough history to get a loan from a commercial bank?

Accepted Answer

A)  A credit history 
B)  Start-up funds 
C)  Stock options 
D)  Financial oversight 
E)  Bonds 
A)  A credit history 
B)  Start-up funds 
C)  Stock options 
D)  Financial oversight 
E)  Bonds

Question 16

Some employees have special knowledge about a future event an organization will experience that will affect the value of stock. Using this knowledge to buy or sell stock before the major event is called

Accepted Answer

A)  prospectus violations. 
B)  market capitalization. 
C)  insider trading. 
D)  retaining earnings. 
E)  underwriting. 
A)  prospectus violations. 
B)  market capitalization. 
C)  insider trading. 
D)  retaining earnings. 
E)  underwriting.

Question 17

When a security is resold and bought by another investor, where does the gain or loss go?

Accepted Answer

A)  The investor who bought the security 
B)  The bank that financed the IPO 
C)  Stakeholders with vested interests in the company 
D)  The investor who sold the security 
E)  The company 
A)  The investor who bought the security 
B)  The bank that financed the IPO 
C)  Stakeholders with vested interests in the company 
D)  The investor who sold the security 
E)  The company

Question 18

The profit realized when the market value of an investment increases is known as which of the following?

Accepted Answer

A)  Capital gains 
B)  Asset allocation 
C)  Diversification 
D)  Price appreciation 
E)  Profiteering 
A)  Capital gains 
B)  Asset allocation 
C)  Diversification 
D)  Price appreciation 
E)  Profiteering

Question 19

What is the first sale of a company's stock to the general public called?

Accepted Answer

A)  IPO 
B)  Going public 
C)  Par value 
D)  Venture capital 
E)  Portfolio 
A)  IPO 
B)  Going public 
C)  Par value 
D)  Venture capital 
E)  Portfolio

Question 20

How is the risk involved in purchasing bonds affected by the bond's maturity date?

Accepted Answer

A)  The sooner the maturity date, the greater the rate of return is on the bond. 
B)  The further the maturity date, the less likely a bondholders' claim will be filed. 
C)  The sooner the maturity date, the lower the initial offering price of the bond. 
D)  The further the maturity date, the greater the chance for unforeseen circumstances that effect the bond. 
E)  The sooner the maturity date, the greater the chance for significant market changes that effect the bond. 
A)  The sooner the maturity date, the greater the rate of return is on the bond. 
B)  The further the maturity date, the less likely a bondholders' claim will be filed. 
C)  The sooner the maturity date, the lower the initial offering price of the bond. 
D)  The further the maturity date, the greater the chance for unforeseen circumstances that effect the bond. 
E)  The sooner the maturity date, the greater the chance for significant market changes that effect the bond.

Which of the following is a basis for a firm to be listed on the New York Stock Exchange?

Differentiate between market value and book value.

What is a stock's book value?

The New York Stock Exchange, the world's oldest electronic stock market, has orders gathered and executed exclusively on a computer network.

According to rating services such as Moody's, what type of rating would a bond have if it was one of the safest investments possible, but produced lower returns?

What do angel investors receive in return for their investment?

Which index focuses specifically on the smallest U.S. companies, based on market capitalization?

Before the Securities and Exchange Commission allows a firm to issue a public offering of new securities, what must be filed?

Which of the following is considered to be one of the riskiest of all investments?

Describe the differences between primary and secondary securities markets.

Which of the following allows after-hours trading and protects traders' anonymity?

Explain how dividend yield and interest dividend yield are computed.

The value of the Dow Jones Industrial Average (DJIA)has remained unchanged in recent years.

When is a company susceptible to a hostile takeover?

What can an angel investor offer to small businesses when the small business doesn't have enough history to get a loan from a commercial bank?

Some employees have special knowledge about a future event an organization will experience that will affect the value of stock. Using this knowledge to buy or sell stock before the major event is called

When a security is resold and bought by another investor, where does the gain or loss go?

The profit realized when the market value of an investment increases is known as which of the following?

What is the first sale of a company's stock to the general public called?

How is the risk involved in purchasing bonds affected by the bond's maturity date?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters

Exam 17: Managing Business Finances

Which of the following is a basis for a firm to be listed on the New York Stock Exchange?

Differentiate between market value and book value.

What is a stock's book value?

The New York Stock Exchange, the world's oldest electronic stock market, has orders gathered and executed exclusively on a computer network.

According to rating services such as Moody's, what type of rating would a bond have if it was one of the safest investments possible, but produced lower returns?

What do angel investors receive in return for their investment?

Which index focuses specifically on the smallest U.S. companies, based on market capitalization?

Before the Securities and Exchange Commission allows a firm to issue a public offering of new securities, what must be filed?

Which of the following is considered to be one of the riskiest of all investments?

Describe the differences between primary and secondary securities markets.

Which of the following allows after-hours trading and protects traders' anonymity?

Explain how dividend yield and interest dividend yield are computed.

The value of the Dow Jones Industrial Average (DJIA)has remained unchanged in recent years.

When is a company susceptible to a hostile takeover?

What can an angel investor offer to small businesses when the small business doesn't have enough history to get a loan from a commercial bank?

Some employees have special knowledge about a future event an organization will experience that will affect the value of stock. Using this knowledge to buy or sell stock before the major event is called

When a security is resold and bought by another investor, where does the gain or loss go?

The profit realized when the market value of an investment increases is known as which of the following?

What is the first sale of a company's stock to the general public called?

How is the risk involved in purchasing bonds affected by the bond's maturity date?

The U.S. Business Environment

Understanding Business Ethics and Social Responsibility

Entrepreneurship, New Ventures, and Business Ownership

Understanding the Global Context of Business

Managing the Business

Organizing the Business

Operations Management and Quality

Employee Behavior and Motivation

Leadership and Decision Making

Human Resource Management and Labor Relations

Marketing Processes and Consumer Behavior

Developing and Pricing Products

Distributing and Promoting Products

Information Technology (IT)for Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters