You have just purchased shares in the Hi-Tech Long-Term Bond Fund, a mutual fund that invests in long-term corporate bonds. Your purchase constitutes a.A direct transfer of funds. b.An indirect transfer through an investment banker. c.An indirect transfer through a financial intermediary. d.A money market transaction. e.All of the above.
9. You have just purchased shares in the Hi-Tech Long-Term Bond Fund, a mutual fund that invests in
long-term corporate bonds. Your purchase constitutes
a.A direct transfer of funds.
b.An indirect transfer through an investment banker.
c.An indirect transfer through a financial intermediary.
d.A
e.All of the above.
10. Which of the following statements is correct?
a.The SEC must approve the price at which a stock is to be offered to the public when a company
"goes public."
b.If a company's stock is listed, then it trades in the over-the-counter (OTC) market.
c.If the "preemptive right" exists in a company's charter, then the holders of its Class A shares
have the right to receive a specified amount of dividends before dividends can be paid on Class
B shares.
d.A "prospectus" is a document which describes a company and the securities it plans to offer, and
the prospectus generally must be approved by the SEC before a public offering of new securities
can be made.
e.The decision to list a company's stock generally is more important to the company than the
decision to go public, i.e., listing has a larger impact on the way the firm is operated than does
going public.
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