Question 1

What is a stock's market 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 price of the stock plus the previous year's dividend 
E)  The monthly average of a stock's price over a year 
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 price of the stock plus the previous year's dividend 
E)  The monthly average of a stock's price over a year

Question 2

What is an angel investor?

Accepted Answer

Outside individuals who provide addition

Question 3

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 4

In which type of market would investors be motivated to sell because they feel prices will fall further?

Accepted Answer

A)  Bear market 
B)  Blue-chip market 
C)  Bull market 
D)  Large cap market 
E)  Composite market 
A)  Bear market 
B)  Blue-chip market 
C)  Bull market 
D)  Large cap market 
E)  Composite market

Question 5

When a new bond is issued,when does the bond's par value have to be repaid?

Accepted Answer

A)  When the company files for bankruptcy 
B)  Before the company goes into default 
C)  On the maturity date 
D)  On the issue date 
E)  When the company makes enough profit to cover the value of the bond 
A)  When the company files for bankruptcy 
B)  Before the company goes into default 
C)  On the maturity date 
D)  On the issue date 
E)  When the company makes enough profit to cover the value of the bond

Question 6

For investors who do not want investment advice and wish to avoid paying a commission,what is the best type of broker assistance firm?

Accepted Answer

A)  Mutual fund advisors 
B)  Investment banks 
C)  Stock broker 
D)  Discount broker 
E)  Full service broker 
A)  Mutual fund advisors 
B)  Investment banks 
C)  Stock broker 
D)  Discount broker 
E)  Full service broker

Question 7

What is the result of a borrower who fails to make payments to the lender when due?

Accepted Answer

A)  Bankruptcy 
B)  Default 
C)  Risk ratings 
D)  Bondholder's claim 
E)  Bond indenture 
A)  Bankruptcy 
B)  Default 
C)  Risk ratings 
D)  Bondholder's claim 
E)  Bond indenture

Question 8

Stocks are known as securities because they represent a secured interest in a company.

Accepted Answer

A) True 
 B)False

Question 9

Unlike the Dow and the S&P 500,all NASDAQ-listed companies are included in the index for a total of some 3,100 firms.

Accepted Answer

A) True 
 B)False

Question 10

What can a company do to attract investors when the value of their stock becomes too high?

Accepted Answer

A)  Use the increased value for equity financing 
B)  Institute a market cap 
C)  Increase earnings per share 
D)  Buy back some shares 
E)  Issue a stock split 
A)  Use the increased value for equity financing 
B)  Institute a market cap 
C)  Increase earnings per share 
D)  Buy back some shares 
E)  Issue a stock split

Question 11

Differentiate between market value and book value.

Accepted Answer

Market value is the current price of a s

Question 12

Describe the differences between primary and secondary securities markets.

Accepted Answer

In primary securities markets,businesses

Question 13

Before a firm can offer an IPO,they must file a document with the SEC that explains the offering and the company.This document is called a(n)

Accepted Answer

A)  Rule of 72 report. 
B)  prospectus. 
C)  FINRA confirmation. 
D)  blue-chip evaluation. 
E)  IPO launch form. 
A)  Rule of 72 report. 
B)  prospectus. 
C)  FINRA confirmation. 
D)  blue-chip evaluation. 
E)  IPO launch form.

Question 14

In a secondary securities market,new stocks and bonds are bought and sold by firms and governments.

Accepted Answer

A) True 
 B)False

Question 15

How are federal and state projects,such as roads and schools,typically financed?

Accepted Answer

A)  Municipal bonds 
B)  Common stock 
C)  Angel investors 
D)  Corporate bonds 
E)  TARP loans 
A)  Municipal bonds 
B)  Common stock 
C)  Angel investors 
D)  Corporate bonds 
E)  TARP loans

Question 16

Mutual funds are traded in securities markets.

Accepted Answer

A) True 
 B)False

Question 17

Which stock exchange has the highest volume of shares traded?

Accepted Answer

A)  American Stock Exchange (AS
E)  
B)  New York Stock Exchange (NYS
E)  
C)  National Association of Securities Dealers Automated Quotation System (NASDAQ) 
D)  Philadelphia Stock Exchange (PS
E)  
E)  Securities and Exchange Commission (SE
C)  
A)  American Stock Exchange (AS
E)  
B)  New York Stock Exchange (NYS
E)  
C)  National Association of Securities Dealers Automated Quotation System (NASDAQ) 
D)  Philadelphia Stock Exchange (PS
E)  
E)  Securities and Exchange Commission (SE
C)

Question 18

The use of special knowledge about a firm,which results in an unfair advantage or generates profit or other types of gain,is known as what?

Accepted Answer

A)  Equity financing 
B)  Market capitalization 
C)  Insider trading 
D)  Prospectus information 
E)  FINRA violation 
A)  Equity financing 
B)  Market capitalization 
C)  Insider trading 
D)  Prospectus information 
E)  FINRA violation

Question 19

The time it takes to double an investment can be estimated by using which of the following?

Accepted Answer

A)  Book value 
B)  The Rule of 72 
C)  Blue-chips 
D)  Dividends 
E)  Market value 
A)  Book value 
B)  The Rule of 72 
C)  Blue-chips 
D)  Dividends 
E)  Market value

Question 20

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

What is a stock's market value?

What is an angel investor?

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

In which type of market would investors be motivated to sell because they feel prices will fall further?

When a new bond is issued,when does the bond's par value have to be repaid?

For investors who do not want investment advice and wish to avoid paying a commission,what is the best type of broker assistance firm?

What is the result of a borrower who fails to make payments to the lender when due?

Stocks are known as securities because they represent a secured interest in a company.

Unlike the Dow and the S&P 500,all NASDAQ-listed companies are included in the index for a total of some 3,100 firms.

What can a company do to attract investors when the value of their stock becomes too high?

Differentiate between market value and book value.

Describe the differences between primary and secondary securities markets.

Before a firm can offer an IPO,they must file a document with the SEC that explains the offering and the company.This document is called a(n)

In a secondary securities market,new stocks and bonds are bought and sold by firms and governments.

How are federal and state projects,such as roads and schools,typically financed?

Mutual funds are traded in securities markets.

Which stock exchange has the highest volume of shares traded?

The use of special knowledge about a firm,which results in an unfair advantage or generates profit or other types of gain,is known as what?

The time it takes to double an investment can be estimated by using which of the following?

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

The US 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 Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters

Exam 17: Managing Business Finances

What is a stock's market value?

What is an angel investor?

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

In which type of market would investors be motivated to sell because they feel prices will fall further?

When a new bond is issued,when does the bond's par value have to be repaid?

For investors who do not want investment advice and wish to avoid paying a commission,what is the best type of broker assistance firm?

What is the result of a borrower who fails to make payments to the lender when due?

Stocks are known as securities because they represent a secured interest in a company.

Unlike the Dow and the S&P 500,all NASDAQ-listed companies are included in the index for a total of some 3,100 firms.

What can a company do to attract investors when the value of their stock becomes too high?

Differentiate between market value and book value.

Describe the differences between primary and secondary securities markets.

Before a firm can offer an IPO,they must file a document with the SEC that explains the offering and the company.This document is called a(n)

In a secondary securities market,new stocks and bonds are bought and sold by firms and governments.

How are federal and state projects,such as roads and schools,typically financed?

Mutual funds are traded in securities markets.

Which stock exchange has the highest volume of shares traded?

The use of special knowledge about a firm,which results in an unfair advantage or generates profit or other types of gain,is known as what?

The time it takes to double an investment can be estimated by using which of the following?

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

The US 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 Itfor Business

The Role of Accountants and Accounting Information

Understanding Money and the Role of Banking

Filters