Exam 6: Investors in the Share Market

Compared with fixed interest securities,shares offer:

The _______ is an indicator of investors' evaluation of a company's future earnings potential.

A company whose share is selling for $24 announces a stock split of four-for-three.Which of the following statements is correct?

According to the text,a tradable benchmark:

Which financial ratio provides information essential for assessing the long-run operation of the company?

Increased competition,increased costs of labour,lawsuits,and unfavourable exchange rates are all examples of:

Which of the following are current liabilities of a company?

The risk that affects the whole market is called:

To track the S&P500,a fund manager can buy:

When investors buy and sell shares based on receiving new information on shares and markets,this is known as:

The indicator ratio that should be used to assess a company's ability to meet its short-term obligations is its:

There is ________ change in the capital structure of a company after a share split.

Systematic risk means:

For an investor,the mix of shares that satisfies their known cash-flow requirements,risk tolerance and future life cycle positions is called:

Continuous disclosure rules of a stock exchange mean that listed companies must disclose any material information continuously every hour.

If a company offers a one-for-five bonus issue and the current share price cum-bonus is $7.50,the theoretical value of each share ex-bonus is:

Which of the following is an example of an unsystematic risk exposure for a company?

A change in foreign exchange rates is a systematic risk that affects the bulk of shares listed on a stock exchange.

If a company has a current ratio of 2,which of the following measures will increase the current ratio?

Define and explain what a share split involves.