Copyright

Securities Markets and Business 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!

Page 1

Question 1 1.

X is a type of bond that is payable to whoever holds it. As such, anyone can claim ownership of X. Because of the risk associated with X, very few are in circulation today.

Identify X.

Question 2 2. 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 3 3. How does common stock differ from preferred stock?

Question 4 4. A , sometimes called a debenture, is a debt instrument, which is a promise to repay a debt.

Question 5 5. Economic data that is used by investors to analyze the current condition of the economy to predict trends in the stock market are called:

Page 2

Question 6 6. Mary wants to invest in a security that is sold in the stock market. If she wants the highest diversification, what should Mary do?

Question 7 7. Investors who are considered financially sophisticated and are able to invest in more risky investments that don't have some of the protections provided by a publicly traded stock registered with the SEC are called:

Question 8 8. Betty decides to invest in a stock because she believes that the company is in a good financial position and its stock will increase in value over time. What type of stock position is she taking on the company?

Question 9 9. Aneeka is reviewing the ratio of stocks that are trending up to stocks that are trending down. Which indicator is she using?

Question 10 10. Securities that are listed and traded on a securities exchange are called:

Page 3

Question 11 11. _____ measures market volatility to forecast significant changes in stock prices.

Question 12 12. Brokers and dealers must be licensed and registered with the:

Question 13 13. Which of these bond types are bonds in which a portion of the outstanding bonds mature or become due at several dates which typically fall in a series?

Question 14 14. What term means the degree to which an asset, such as an ETF, can be converted to cash?

Question 15 15. Which of the following statements is true about bonds?

Page 4

Question 16 16. There are two general types of stock:

Question 17 17. Why might some people see preferred stock as being the BEST option?

Question 18 18. Which of the following describes the effect of bond financing on owner control?

Question 19 19. Which of the following indicators gauges the total economic output of an economy in order to forecast movement in the stock market?

Question 20 20. You can think of as owning a share - or part of - the company

Page 5

Question 21 21. How would an investment bank help a company raise funds in the secondary securities market?

Question 22 22. Which of these bond types provides the bondholder with the right to exchange the bond for a specific number of shares in the company's common stock before the maturity date?

Question 23 23. An organization that provides the marketplace where stocks are traded is called a:

Question 24 24. An investment fund that is managed by an investment company is called a:

Question 25 25. How can an investor become educated about the potential stock investment they are going to make?

Page 6

Question 26 26. Which of the following statements about technical analysis and technical indicators is FALSE?

Question 27 27. Where are publicly traded stocks traded?

Question 28 28. Which of the following agencies regulates the trading of stock?

Question 29 29. What is a creation unit?

Question 30 30. Which of the following is the term for when a bond is due?

Securities Markets and Business 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!

Business 100: Intro to Business  /  Business Courses
Support