Ch 2 Quiz Qs only-2

Which of the following is not a money market instrument? a.Equity Shares b.Treasury Bills c.Certificate of Deposits d.Commercial Paper **reply fast plz -

Question 1 a. Distinguish between the following:i. Primary market and secondary market ii. Money market and capital market iii. Fixed income security and convertible security iv. Systematic risk and Unsystematic risk b. You are an investment advisor and you are asked to guide a new investor to trade shares on the Ghana Stock Exchange (GSE). Explain any six (6) of the listing requirement of GSE that are to be met before the company can start trading on the market.   Question 2 a. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests in stocks, bonds, short-term money market instruments and other securities. The performance of these mutual funds and the portfolio they build needs to be evaluated as frequently as possible. Evaluating the performance of these mutual funds is important for both existing and potential investors. The Table below provides the average return, standard deviation and betas of selected…

What is the difference between primary and secondary markets? 1. Primary markets help in capital formation, while secondary capital provides liquidity to the investor 2. Initial public offerings are undertaken in both primary and secondary markets 3. Stock exchanges are an example of secondary markets Select the correct answer using the codes given below:

Which of the following statements about financial markets and securities are true? Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange. A corporation acquires new funds only when its securities are sold in the primary market. Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid. All of the choices are true.

what is the most frequent type of transaction in financial markets?   a. IPO's   b. secondary market trades   c. primary market trades   d. venture capitalist trades

[S1] When unrelated traders buy and sell stocks, the entity which issued the shares will be able to obtain additional financing. [S2] The underwriting syndicate is an underground group of individual assisting in the issuance of shares and the collection of cash investments. *a. Only S1 is true.b. Only S2 is true.c. Both are true.d. Both are false.

Secondary Market can be best described in which of the following statement? a. It is a market for an unlisted company to raise equity capital. b. It is a market where securities are issued through private placement. c. It is a market in which short-term money market instruments such as Treasury bills are traded. d. It is a market in which preowned securities are traded.

31. A primary financial market is one that: A. offers financial assets with the highest expected return B. offers the greatest number of financial assets C. offers financial assets with the highest historical return D. involves the sale of financial assets for the first time 32. Purchasing shares on the Saudi Stock Exchange is an example of: A. a primary market transaction B. companies raising finance from another financial intermediary C. a secondary market transaction D. companies raising new finance

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Common stocks typically have which of the following that bonds do NOT have? 1. I. Voting rights 2. I1. Fixed cash flows 3. Ill. Set maturity date 4. IV. Tax deductibility of cash flows to investors

Case Study #3: Chapter 6 Business Analysis -  A business can be valued by capitalizing its earnings stream (see example 6.15).  How might you use the same idea to value securities, especially the stock of large publicly held companies? Is there a way to calculate a value that could be compared to the stock’s market price that would tell an investor whether it’s a good buy? (If the market price is lower than the calculated value, the stock is a bargain.)  What financial figures associated with shares of stock might be used in the calculation. Consider the per share figures and ratios discussed in chapter 3 including EPS, dividends, book value per share, etc.  Does one measure make more sense than the others? What factors would make a stock worth more or less than your calculated value?

11. Large, well-known public companies can reduce the time required to register and issue securities byusing a(n)a.Shelf registration.b.Subchapter S registration.c.Underwriting syndicate.d.Secondary market registration.e."Red herring" registration. 12. Which of the following statements about listing on a stock exchange is most correct?a.Listing is a decision of more significance to a firm than going public.b.Any firm can be listed on the NYSE as long as it pays the listing feec.Listing provides a company with some "free" advertising, and status as a listed company mayenhance the firm's prestige.d.Listing reduces the reporting requirements for firms, because listed firms file reports with theexchange rather than with the SEC.e.Statements b and c are both correct.

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