Exam 19: Using Securities Markets for Financing and Investing Opportunities

A company's stock does not have to be listed on one of the major stock exchanges in order to trade. It can be traded on

Penny is impressed with contemporary high-tech companies that have listed their stock on an electronic telecommunications network of securities dealers who trade the stock. She is referring to firms such as Microsoft, Google, and Apple. Penny ideally would like her company's stock listed on the

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

Which of the following federal government agencies has responsibility for regulating the various stock exchanges in the U.S.?

In the securities markets, capital gains take place when

Corporations sell a new issuance of securities in the primary market.

Like many stock analysts, Layla believes that program trading greatly decreases the volatility of stock market prices.

An unsecured bond, backed only by the well-respected name of the organization, is called a ________ bond.

Bonds perceived as high risk typically pay ________ interest rates.

Stock certificates represent evidence of ownership in an organization. A stock certificate contains which of the following?

From an investor's point of view, corporate bonds offer less risk than government bonds.

What agency sets the margin rates for purchasing stock in the U.S.?

Private investors benefit from securities markets primarily by

Having just returned from serving with the U.S. Marines in Afghanistan, Nick has managed to save most of his earnings. He has enrolled in the local community college and he is back living with his parents while he assimilates back into U.S. life. As his business major friend, he has come to you for advice. He would like to see his $40,000 savings grow, yet he knows that he will need it in about five years when he and his girlfriend are out of school and make plans to get married. He also worries that his car may break down and he will need to invest in another used car. Which of the following would you suggest for Nick?

A bond's face value is the same as its

Firms are at a disadvantage when issuing bonds because the interest rate that they must pay to bondholders is not tax deductible.

________ have a set dollar goal the fund manager wants to manage. Once the fund has reached that goal, it does not accept new investors.

Online investors expect more expert advice than investors using traditional brokerage firms.

Bondholders can sell their bonds

When comparing the investments of different mutual funds, little variation in the risk level exists.