Exam 11: Securities and Markets

Which one of the following is not a cost to the issuing firm of going public with an initial stock offering?

Rights offerings among public corporations became infrequent in the United States during the 1980s and 1990s.

The regulation of new security sales by individual states is referred to as:

The flotation costs of an initial public offering are comprised solely of direct costs and the spread.

Newly created securities are sold in the:

The Facebook IPO was the second largest IPO in history by a U.S. firm.

Purchasers and sellers of futures are generally required to deposit an initial margin in the range of ___________ with the exchange's clearinghouse to reduce credit risk.

The ___________________ Exchange (ICE) serves the global markets for agricultural, credit, currency, emissions, energy and equity index markets.

A market is liquid if

The time when investment bankers were discussing the firm's risk and return potential, the preliminary price range is called a "dog-and-pony" show.

The market for large blocks of listed stocks that operates outside the confines of the organized exchanges is called the:

Trades can be for a round lot of 1,000 shares or an odd lot, a trade of fewer than 1,000 shares.

If a Microsoft January 20 put option had a strike price of $20 and the market price of the underlying Microsoft stock was $15.00, the put option would be _______________.

A stop-loss order:

Margin trading is safe.

__________________ is a technique for trading stocks as a group rather than individually, defined as a minimum of at least 15 different stocks with a maximum value of $1 million.

All securities must be listed before they may be traded on the New York Stock Exchange.

While the Chicago Board Options Exchange remains the main market for exchange traded options, the ______________ exchange also deals in option contracts.

The maximum buying price or the minimum selling price specified by the investor is called a:

Underpricing represents the difference between the aftermarket price and the initial offering price.