Exam 3: How Securities are Traded

You buy 300 shares of Qualitycorp for $30 per share and deposit initial margin of 50%.The next day Qualitycorp's price drops to $25 per share.What is your actual margin?

You sold short 100 shares of common stock at $45 per share.The initial margin is 50%.At what stock price would you receive a margin call if the maintenance margin is 35%?

Assume you sold short 100 shares of common stock at $50 per share.The initial margin is 60%.What would be the maintenance margin if a margin call is made at a stock price of $60?

Shares for short transactions

Assume you sold short 100 shares of common stock at $70 per share.The initial margin is 50%.What would be the maintenance margin if a margin call is made at a stock price of $85?

The minimum annual pretax income in the previous two years required for an initial listing on the New York Stock Exchange is

Assume you sell short 100 shares of common stock at $30 per share,with initial margin at 50%.What would be your rate of return if you repurchase the stock at $35/share? The stock paid no dividends during the period,and you did not remove any money from the account before making the offsetting transaction.

You sold short 300 shares of common stock at $55 per share.The initial margin is 60%.At what stock price would you receive a margin call if the maintenance margin is 35%?

Block transactions are transactions for more than _______ shares and they account for about _____ percent of all trading on the NYSE.

You sold short 150 shares of common stock at $27 per share.The initial margin is 45%.Your initial investment was

The trading of stock that was previously issued takes place

Assume you sell short 1000 shares of common stock at $35 per share,with initial margin at 50%.What would be your rate of return if you repurchase the stock at $25/share? The stock paid no dividends during the period,and you did not remove any money from the account before making the offsetting transaction.

Which of the following orders instructs the broker to buy at or below a specified price?

You purchased 100 shares of XON common stock on margin at $60 per share.Assume the initial margin is 50% and the maintenance margin is 30%.Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest on margin.

You want to purchase GM stock at $40 from your broker using as little of your own money as possible.If initial margin is 50% and you have $4000 to invest,how many shares can you buy?

Investment bankers

The securities act of 1934 ____________. I.requires full disclosure of relevant information relating to the issue of new securities II.requires registration of new securities III.requires issuance of a prospectus detailing financial prospects of the firm IV.established the SEC V.requires periodic disclosure of relevant financial information VI.empowers SEC to regulate exchanges,OTC trading,brokers,and dealers

Firms raise capital by issuing stock

Which one of the following statements regarding orders is false?

You want to purchase XON stock at $60 from your broker using as little of your own money as possible.If initial margin is 50% and you have $3000 to invest,how many shares can you buy?