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Exam 19: Using Securities Markets for Financing and Investing Opportunities

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Question 171

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New investors may want to consider _______ funds,which are mutual funds that invest in one particular kind of stock or a particular kind of bond,or even stocks that are representative of the entire market.

A) international
B) index
C) global
D) relief

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Question 172

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Securities markets help companies raise long-term debt and equity financing.

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Question 173

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A bond sold with a sinking fund provision requires the firm to allow a stockholder to exchange his/her bond for a specified number of shares of common stock.

For investors who desire the least possible risk,a share of stock in an established corporation provides the safest investment.

Similar to bond investments,preferred shares can be _________,meaning the firm may buy them back.

Most businesses prefer to meet their long-term financial needs through:

Which of the following trades corporate stocks not listed on the national securities exchanges?

Which of the following organizations provides an assessment of the relative level of risk of a particular firm's bond issue?

The Dow Jones Industrial Average utilizes the prices of the same 30 companies' stocks each year to ensure consistency.

________ stocks represent investments in emerging fields that have the potential to realize better than average increases in the stock's prices.

Examples of institutional investors are pension funds,mutual funds,and insurance companies.

Corporations that issue preferred stock incur a legal obligation to pay dividends to those stockholders.

An investor earns a capital gain when they sell a stock for more than they paid for it.

A margin call requires an investor to repay money borrowed from the broker used to purchase the stock.

When market interest rates increase,the selling price of existing bonds will:

Bonds perceived as high risk typically pay ________ interest rates.

In the Legal Briefcase box in Chapter 19,the securitization of subprime loans is explained as one of the causes of the economic recession of 2008-2010.

An income stock offers investors a relatively high dividend yield on their investment.

Bond interest is usually paid in two times each year,even though the interest rate that is usually quoted is an annual rate.

In 2008,the NYSE Euronext purchased AMEX,creating the world's largest exchange.