Question 1

Investors are concerned primarily with the ________ of a stock.

Accepted Answer

A)  earnings value 
B)  par value 
C)  resale value 
D)  market value 
E)  book value 
A)  earnings value 
B)  par value 
C)  resale value 
D)  market value 
E)  book value

Question 2

What is par value?

Accepted Answer

Par value is the arbitrary val

Question 3

What is a security?

Accepted Answer

A security is a stock or bond

Question 4

By law,the market value of a stock is determined by objective factors like company profits,but not by emotional factors like rumours.

Accepted Answer

A) True 
 B)False

Question 5

Of par value,market value,and book value,which is the most important to investors and why?

Accepted Answer

Market value is of most import

Question 6

The market value of a share of stock is determined by

Accepted Answer

A)  dividing total assets by the number of outstanding shares. 
B)  stockbrokers' opinions and ratings. 
C)  dividing total shareholders' equity by the number of outstanding shares. 
D)  what buyers are willing to pay for the shares. 
E)  dividing net profit by the number of outstanding shares. 
A)  dividing total assets by the number of outstanding shares. 
B)  stockbrokers' opinions and ratings. 
C)  dividing total shareholders' equity by the number of outstanding shares. 
D)  what buyers are willing to pay for the shares. 
E)  dividing net profit by the number of outstanding shares.

Question 7

The OTC market consists of many people in different locations who hold an inventory of securities that are not listed on any of the major exchanges.

Accepted Answer

A) True 
 B)False

Question 8

Bond prices usually move in the same direction as interest rates.

Accepted Answer

A) True 
 B)False

Question 9

A corporation bond selling at 155 1/4 would cost a buyer $1552.50.

Accepted Answer

A) True 
 B)False

Question 10

Bond prices are typically expressed in terms of $10 000 increments.

Accepted Answer

A) True 
 B)False

Question 11

What is diversification?

Accepted Answer

Diversification is a risk management str

Question 12

What is a debenture?

Accepted Answer

Debentures are bonds that are

Question 13

Discuss the investment traits of preferred stock.

Accepted Answer

- stocks are issued with a stated par va

Question 14

At regular intervals,Harry receives a cheques from the Dow Corporation for bond interest.Harry has _________ bonds.

Accepted Answer

A)  secured 
B)  registered 
C)  bearer 
D)  debenture 
E)  callable 
A)  secured 
B)  registered 
C)  bearer 
D)  debenture 
E)  callable

Question 15

Assume you bought a $1000 par-value bond in 2004 for 85 1/4 with an interest rate of 4.7%.If you held the bond until maturity in 2014,what would be the total amount that you would earn on this bond?

Accepted Answer

A)  $1000.00 
B)  $852.50 
C)  $617.50 
D)  $470.00 
E)  The amount cannot be calculated given the information provided. 
A)  $1000.00 
B)  $852.50 
C)  $617.50 
D)  $470.00 
E)  The amount cannot be calculated given the information provided.

Question 16

Common stocks are among the riskiest of securities.

Accepted Answer

A) True 
 B)False

Question 17

What is a hedge fund?

Accepted Answer

Hedge funds are private pools of money t

Question 18

Corporation B has issued $100 million in bonds that mature in 20 years,but it is retiring $5 million of the bonds each year.The corporation has issued serial bonds.

Accepted Answer

A) True 
 B)False

Question 19

Mega Computer issued stock with a face value of one cent and then sold the shares to the public for $20.00 each.Ted bought 10 shares at that price.Today,Ted sold his shares to David for $25.00 each.What is the par value of the stock?

Accepted Answer

A)  $20.00 
B)  $25.00 
C)  $5.00 
D)  $19.99 
E)  $0.01 
A)  $20.00 
B)  $25.00 
C)  $5.00 
D)  $19.99 
E)  $0.01

Question 20

All corporations issue common stock,but not all of them issue bonds.

Accepted Answer

A) True 
 B)False

Investors are concerned primarily with the ________ of a stock.

What is par value?

What is a security?

By law,the market value of a stock is determined by objective factors like company profits,but not by emotional factors like rumours.

Of par value,market value,and book value,which is the most important to investors and why?

The market value of a share of stock is determined by

The OTC market consists of many people in different locations who hold an inventory of securities that are not listed on any of the major exchanges.

Bond prices usually move in the same direction as interest rates.

A corporation bond selling at 155 1/4 would cost a buyer $1552.50.

Bond prices are typically expressed in terms of $10 000 increments.

What is diversification?

What is a debenture?

Discuss the investment traits of preferred stock.

At regular intervals,Harry receives a cheques from the Dow Corporation for bond interest.Harry has _________ bonds.

Assume you bought a $1000 par-value bond in 2004 for 85 1/4 with an interest rate of 4.7%.If you held the bond until maturity in 2014,what would be the total amount that you would earn on this bond?

Common stocks are among the riskiest of securities.

What is a hedge fund?

Corporation B has issued $100 million in bonds that mature in 20 years,but it is retiring $5 million of the bonds each year.The corporation has issued serial bonds.

Mega Computer issued stock with a face value of one cent and then sold the shares to the public for $20.00 each.Ted bought 10 shares at that price.Today,Ted sold his shares to David for $25.00 each.What is the par value of the stock?

All corporations issue common stock,but not all of them issue bonds.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Financial Decisions and Risk Management

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Exam 19: Understanding Securities and Investments

Investors are concerned primarily with the ________ of a stock.

What is par value?

What is a security?

By law,the market value of a stock is determined by objective factors like company profits,but not by emotional factors like rumours.

Of par value,market value,and book value,which is the most important to investors and why?

The market value of a share of stock is determined by

The OTC market consists of many people in different locations who hold an inventory of securities that are not listed on any of the major exchanges.

Bond prices usually move in the same direction as interest rates.

A corporation bond selling at 155 1/4 would cost a buyer $1552.50.

Bond prices are typically expressed in terms of $10 000 increments.

What is diversification?

What is a debenture?

Discuss the investment traits of preferred stock.

At regular intervals,Harry receives a cheques from the Dow Corporation for bond interest.Harry has _________ bonds.

Assume you bought a $1000 par-value bond in 2004 for 85 1/4 with an interest rate of 4.7%.If you held the bond until maturity in 2014,what would be the total amount that you would earn on this bond?

Common stocks are among the riskiest of securities.

What is a hedge fund?

Corporation B has issued $100 million in bonds that mature in 20 years,but it is retiring $5 million of the bonds each year.The corporation has issued serial bonds.

Mega Computer issued stock with a face value of one cent and then sold the shares to the public for $20.00 each.Ted bought 10 shares at that price.Today,Ted sold his shares to David for $25.00 each.What is the par value of the stock?

All corporations issue common stock,but not all of them issue bonds.

Understanding the Canadian Business System

Understanding the Environments of Business

Conducting Business Ethically and Responsibly

Understanding Entrepreneurship, small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Managing Human Resources

Understanding Labourmanagement Relations

Motivating and Leading Employees

Producing Goods and Services

Increasing Productivity and Quality

Managing Information Systems and Communication Technology

Understanding Accounting Issues

Understanding Marketing Processes and Consumer Behaviour

Developing and Promoting Goods and Services

Pricing and Distributing Goods and Services

Understanding Money and Banking

Financial Decisions and Risk Management

Filters