FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 19: Using Securities Markets for Financing and Investing Opportunities

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

Corporations that want to attract more investors by lowering the selling price of their common stock might consider declaring a:

A) bankruptcy filing.
B) cash dividend.
C) margin call.
D) stock split.

E) A) and C)
F) B) and C)

Correct Answer

verified

Show Answer

Question 52

True/False

Review LaterAdd Note

Review Later

A mutual fund's purpose is rapid investment growth not to provide diversification for investors.

A) True
B) False

Correct Answer

verified

Show Answer

Question 53

Multiple Choice

Review LaterAdd Note

When retained earnings are not enough to meet their long-term funding needs,businesses may be able to raise funds by:

Stock quotations are now available online.Which of the following pieces of information is not likely to be on the stock quotation?

A sinking fund provision decreases the risk of repayment in the minds of the investors.

As a new father,Dave plans to accumulate funds over the next eighteen years to help pay for his son's college education.Security markets provide Dave with:

Samad wants to supplement his current investments with a high risk,low priced security.Which of these best fits his strategy of high risk,low price and a potentially high rate of return?

A penny stock generally sells for a low initial price,pays regular dividends and provides consistent growth in the stock's value.

When investment bankers underwrite an issue,they buy at a discounted price,the entire stock issue of a firm and then sell the stock,at full price,to private investors.

The call provision set by a company on its bonds benefits the investor.

According to the Reaching Beyond Our Borders box in Chapter 19,purchasing ADRs is one way that U.S.investors participate in the global securities market.

After many years as a privately held corporation,Connecticut Industries decided to offer stock to the general public.Connecticut may discover that stockholders:

The Dow Jones Industrial Average reflects the daily average price of all the stocks traded on the New York Stock Exchange.

The number of U.S.companies that are listed on foreign stock exchanges is declining.

A Bond's face value is the same as its:

Over the past 50 years,the average annual return on bonds has exceeded the return from stocks.

"Black Tuesday" refers to the stock market crash that occurred in October 1987.

In an attempt to lower their investment risk,investors prefer to buy a company's bond rather than the stock of the same firm.

Bonds sold at a ________,sell for less than face value.

Tyler is looking for an investment that will pay a little better than what he can get from a government bond.You suggest that he consider a new issue of debenture bonds by Very Vegetarian that pay 8.5% annually.You explain that Very Vegetarian has operated for a long time,and the debenture feature makes these bonds more secure than others.