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Securities Market Basics Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Why might a business be afraid of issuing common stock?

Question 2 2. How can an investor become educated about the potential stock investment they are going to make?

Question 3 3. What federal government agency regulates securities such as stocks?

Question 4 4. How does common stock differ from preferred stock?

Question 5 5. Why might some people see preferred stock as being the BEST option?

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Question 6 6. How would an investment bank help a company raise funds in the secondary securities market?

Question 7 7. What's the best explanation of a primary securities market?

Question 8 8. Why would a company want an investment bank to underwrite an initial public offering versus using the best-efforts basis?

Question 9 9. Which of the following is sold on a securities market?

Question 10 10. What does an investment banker do?

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Question 11 11. The Fudge Factory issues a bond with a par value of $100,000 that pays an interest rate of 7% annually for 10 years. How much will each semiannual (every six months) coupon payment be?

Question 12 12. Which of the following statements is true about bonds?

Question 13 13. Which of the following is a considered an advantage of bond financing?

Question 14 14. Which of the following describes the effect of bond financing on owner control?

Question 15 15. Which of the following is the term for when a bond is due?

Securities Market Basics Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

GACE Business Education (542): Practice & Study Guide  /  Business Courses
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