Exam 10: Financial Markets: Allocating Financial Resources

The price at which shares of an open-end mutual fund are issued and redeemed is based on the fund's _____.

One drawback of exchange traded funds (ETFs)is that investors:

The Securities Act of 1933 created the Federal Reserve System to serve as the central bank in the United States.

Mr. Arne Freidrich looks at SoTon Co.'s latest annual report and feels that the company is performing well. However, he believes it is not worth spending more than $70 per share of SoTon. He contacts his broker and tells him to acquire 50 shares of SoTon only if they are less than $70 a share. Which of the following orders has Mr.Freidrich placed to acquire the shares?

Mrs. Jamieson likes to buy stock of relatively small, new companies with innovative products in a rapidly expanding sector of the economy. She believes that the value of many of these stocks will rise significantly over time. Mrs. Jamieson's approach is an example of the market timing strategy.

Which of the following is a drawback of private placements?

David owns 15 percent of the shares of common stock currently held in BIGD Analytics Co. At the most recent meeting, the board of directors authorized the sale of 250,000 new shares of stock to raise funds. As an existing stockholder, David may have a _________ to buy up to 37,500 shares of the new stock before it is offered to the public.

The difference between the prices at which securities are bought and sold is called a thrift.

_________ overturned the section of the Banking Act of 1933 that prohibited commercial banks from selling insurance or performing the functions of investment banks.

Mr. Troy Samson wants to buy stocks of a local retail company. He needs some help with market research and financial planning for the venture. Mr. Samson should contact a(n)_____.

Cartman owns convertible securities in OctoCore Corp. If the conversion ratio for the convertible securities is 37, it means that:​

In order to access stock information for a particular corporation on a financial website, an individual normally types in the corporation's _____.

Mr. Joe Lewis bought 650 shares of stocks in the Garrett Corp. last year at a price of $19 per share. The market price has now risen to $25 per share. This result indicates that Mr. Lewis could realize a capital gain if he sells his stock.

Jack recently received a considerable sum of money by selling his property. He decides to invest this sum in a diversified set of securities. He plans to retain these securities for a long time until they have appreciated.Jack is using the _____ investment strategy.

A(n)_____ is the first time a company issues stock that may be bought by the general public.

Richard has been following information about Pioneer Mobil on a financial website. He has noticed that the firm's price-to-earnings ratio (P/E)has been steadily rising. Richard can conclude from this result that the company:

The advantage of electronic communication networks (ECNs)is that they:

Which of the following is true of the comparison between the Dow Jones Industrial Average (DJIA)stock index and the Standard & Poor's 500 (S&P 500)stock index?

A(n)_____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets.

The Securities Exchange Act of 1934 required that all publicly traded firms with at least _____ shareholders and $10 million in assets file quarterly and annual financial reports with the Securities and Exchange Commission (SEC).