You freshly sold 100 share of Microsoft share to your brother at a household reunion. At the reunion her brother offered you a check for the stock and you offered your brothers the stock certificates. I m sorry of the following finest describes this transaction?a. This is an instance of a direct transfer of capital.b. This is an example of a primary sector transaction.c. This is an instance of an exchange of physics assets.d. This is an instance of a money industry transaction.e. This is an example of a derivative market transaction.

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Which of the following statements is CORRECT?a. The NYSE does not exist as a physics location. Quite it represents a loosened collection of dealers who profession stock electronically.b. An instance of a primary industry transaction would be her uncle moving 100 shares of Walmart share to you as a birthday gift.c. Funding market instruments include both permanent debt and also common stocks.d. If her uncle in new York marketed 100 share of Microsoft v his broker come an investors in Los Angeles, this would be a primary industry transaction.e. While the two typically perform comparable functions, investment financial institutions generally specialization in loan money, conversely, commercial financial institutions generally aid companies raise large blocks of funding from investors.
Which that the adhering to is a primary industry transaction?a. You market 200 shares of IBM share on the NYSE v your broker.b. Girlfriend buy 200 share of IBM share from your brother. The trade is no made with a broker--you just offer him cash and he provides you the stock.c. IBM issues 2,000,000 shares of new stock and sells castle to the public through an investment banker.d. One financial school buys 200,000 shares of IBM share from an additional institution. An investment banker arranges the transaction.e. IBM sell 2,000,000 shares of treasury share to that is employees as soon as they exercise choices that to be granted in front years.
Which the the adhering to is an example of a resources market instrument?a. Advertising paper.b. Preferred stock.c. U.S. Treasury bills.d. Banker"s acceptances.e. Money sector mutual funds.
Money markets are markets fora. Foreign currencies.b. Consumer auto loans.c. Common stocks.d. Permanent bonds.e. Momentary debt securities such together Treasury bills and also commercial paper.
Which that the following statements is CORRECT?a. If you acquisition 100 share of Disney stock from her brother-in-law, this is an example of a primary market transaction.b. If Disney issues extr shares of typical stock with an investment banker, this would be a an additional market transaction.c. The NYSE is an instance of an over-the-counter market.d. Only institutions, and also not individuals, deserve to engage in derivative industry transactions.e. As they are usually defined, money industry transactions involve blame securities with maturities of much less than one year.
You newly sold 200 shares of Disney stock, and the transfer was made with a broker. This is an example of:a. A money market transaction.b. A primary market transaction.c. A secondary market transaction.d. A futures market transaction.e. An over-the-counter market transaction.
Which that the following statements is CORRECT?a. Hedge funds space legal in Europe and Asia, however they space not allowed to run in the joined States.b. Hedge funds space legal in the unified States, but they room not permitted to operate in Europe or Asia.c. Hedge funds have an ext in common with investment banks than with any other kind of financial institution.d. Hedge accumulation have an ext in typical with commercial financial institutions than with any other form of financial institution.e. Hedge funds room not as highly regulated as many other types of jae won institutions. The justification because that this irradiate regulation is that just "sophisticated investors" (i.e., those v high network worths and also high incomes) are permitted to invest in these funds, and also these investors supposedly can do any kind of necessary "due diligence" ~ above their very own rather than have actually it excellent by the SEC or some various other regulator.
Which the the complying with statements is CORRECT?a. If the distinguish are becoming blurred, investment financial institutions generally specialize in lending money, whereas commercial banks generally assist companies raise resources from other parties.b. The NYSE operates together an auction market, whereas Nasdaq is an instance of a dealer market.c. Money industry mutual funds normally invest your money in a well-diversified investment portfolio of liquid typical stocks.d. Money sectors are sectors for permanent debt and common stocks.e. A liquid protection is a security whose value is derived from the price that some other "underlying" asset.
Which that the complying with statements is CORRECT?a. The brand-new York stock Exchange is an auction market, and it has actually a physical location.b. Home mortgage loans space traded in the money market.c. If an investors sells shares of stock v a broker, climate it would be a primary market transaction.d. Capital markets deal just with common stocks and other same securities.e. When the distinctions room blurring, investment banks generally specialize in loan money, vice versa, commercial banks generally assist companies raise capital from various other parties.
Which that the following statements is CORRECT?a. The term "IPO" means Introductory Price Offered, and also it is the price in ~ which share of a new company are readily available to the public.b. IPO prices are generally created by the market, and also buyers that the brand-new stock need to pay the price that prevails at the near of trading on the work the stock is offered to the public.c. In a "Dutch auction," investors who want to buy share in an IPO send bids denote how many shares they want to buy and also the price they are willing come pay. The company determines how many shares it wants to sell. The highest possible price that permits the firm to offer the desired variety of shares is the price the all buyers should pay.d. The is feasible that the price set in an IPO is so high the investors will certainly refuse to buy the number of shares the the company wants to sell. In this situation, the IPO is said to it is in oversubscribed.e. That is feasible that the price collection in one IPO is therefore low that investors will desire to buy more shares 보다 the firm wants to sell. In that case, the company will have to issue more shares 보다 it wants to sell.(2-4) Financial industries F H
Which of the adhering to statements is CORRECT?a. The most necessary difference between spot sectors versus futures sectors is the maturity the the tools that are traded. Spot industry transactions indicate securities that have maturities of much less than one year conversely, futures markets transactions show off securities v maturities better than one year.b. Funding market transactions indicate only wanted stock or typical stock.c. If General electrical were to issue brand-new stock this year, this would certainly be considered a an additional market transaction due to the fact that the firm already has actually stock outstanding.d. Both Nasdaq dealers and "specialists" top top the NYSE hold inventories the stocks.e. Money industry transactions perform not involve securities denominated in currencies other than the U.S. Dollar.
Which that the adhering to statements is not CORRECT?a. Once a corporation"s shares space owned by a couple of individuals, us say that the for sure is "closely, or privately, held."b. "Going public" creates a firm"s true intrinsic value and ensures the a liquid market will always exist because that the firm"s shares.c. The share of publicly owned providers must generally be registered with and also reported come a regulatory company such together the SEC.d. When stock in a closely held corporation is available to the general public for the very first time, the transaction is called "going public, or an IPO," and the industry for such stock is referred to as the new issue or IPO market.e. That is possible for a for sure to go public and yet no raise any additional new capital because that the firm itself.
which that the complying with is correct?A. The continuous growth design takes into consideration the resources gains earn on a stockB. The is appropriate to use the consistent growth version to calculation stock value also if the expansion rate never becomes constantC. Two firms v the same dividend and growth rate must likewise have the very same stock priceD. A and c
the preemptive best is important to shareholders since itA. Permits management come sell additional shares below the existing market priceB. Protects the present shareholders versus dilution of ownership interests.C. Is included in higher dividends per shareD. Will result in higher dividends every shareE. The preemptive best is not crucial to shareholders
which is correct?A. Assume the the required rate of return on a offered stock is 13%. If the stocks dividend is growing at a consistent rate that 5%, its meant dividend yeild is 5% together wellB. The dividend productivity on a share is same to the expected return much less the expected funding gainC. The stocks dividend yield have the right to never exceed the expected expansion rateD. B&c
The new York stock Exchange is primarilya. A second market.b. A physical place auction market.c. One over-the-counter market.d. Declaration a and also b are correct.e. Explanation b and also c are correct.
You recently sold 100 shares of Microsoft stock to your brother at a family members reunion. At the reunion your brother gave you a examine for the stock and you gave your brothers the stock certificates. I m sorry of the following finest describes this transaction?a. This is an example of a straight transfer that capital.b. This is an instance of a primary sector transaction.c. This is an instance of an exchange of physics assets.d. This is an instance of a money-market transaction.e. Declaration a, b, and also d room correct. Declare c is incorrect.
If the stock industry is semistrong-form efficient, i beg your pardon of the adhering to statements is many correct?a. All stocks should have the same expected returns; however, they may have various realized returns.b. In equilibrium, stocks and also bonds should have the exact same expected returns.c. Investors deserve to outperform the market if castle have access to details that has not yet been publicly revealed.d. If the share market has been performing strongly end the previous several months, share prices are an ext likely to decrease than rise over the following several months.e. None of the statements above is correct.
One of the simple relationships in interest price theory is that, various other things hosted constant, for a given adjust in the forced rate the return, the the time to maturity, the _____ the adjust in price.a. Longer; smaller.b. Shorter; larger.c. Longer; greater.d. Shorter; smaller.e. Explanation c and d room correct.
5. Assume that a 10-year Treasury bond has actually a 12 percent yearly coupon, if a 15-year Treasury bond has an 8 percent yearly coupon. The yield curve is flat; every Treasury securities have actually a 10 percent productivity to maturity. Which of the following statements is most correct?a. The 10-year bond is offering at a discount, if the 15-year link is selling at a premium.b. The 10-year link is offering at a premium, if the 15-year shortcut is selling at par.c. If interest prices decline, the price of both bonds will increase, but the 15-year bond will have a larger percentage boost in price.d. If the yield to maturity on both bonds remains at 10 percent end the following year, the price that the 10-year bond will certainly increase, but the price that the 15-year bond will fall.e. Explanation c and also d room correct.
6. I m sorry of the complying with statements is most correct?a. Every else equal, long-term bonds have more interest price risk than short-term bonds.b. All else equal, high-coupon bond have much more reinvestment rate risk than low-coupon bonds.c. Every else equal, momentary bonds have an ext reinvestment price risk than do long-term bonds.d. Declaration a and also c space correct.e. All of the statements above are correct.
All the the complying with may serve to minimize the coupon rate that would otherwise be required on a bond issued at par, except aa. Sinking fund.b. Limit covenant.c. Call provision.d. Change in rating from Aa to Aaa.e. No one of the explanation above. (All might reduce the forced coupon rate.)
You room considering 2 Treasury bonds. Bond A has a 9 percent annual coupon, and also Bond B has a 6 percent annual coupon. Both bonds have a yield to maturity of 7 percent. Assume the the productivity to maturity is expected to stay at 7 percent. Which of the following statements is most correct?a. If the yield to maturity continues to be at 7 percent, the price of both binding will rise by 7 percent per year.b. If the yield to maturity continues to be at 7 percent, the price that both bonds will rise over time, however the price of shortcut A will increase by more.c. If the productivity to maturity remains at 7 percent, the price of both bond will stay unchanged.d. If the productivity to maturity continues to be at 7 percent, the price of bond A will certainly decrease end time, however the price of link B will boost over time.e. If the productivity to maturity continues to be at 7 percent, the price of link B will decrease over time, yet the price of shortcut A will rise over time.

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A 10-year bond has actually a 10 percent annual coupon and a yield to maturity of 12 percent. The bond can be referred to as in 5 years at a contact price the $1,050 and also the bond"s confront value is $1,000. I beg your pardon of the following statements is most correct?a. The bond"s current yield is higher than 10 percent.b. The bond"s yield to call is much less than 12 percent.c. The link is offering at a price below par.d. Declaration a and also c room correct.e. No one of the statements above is correct.
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