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.
In the world of investing mutual funds play an important role when it comes to accumulation of capital and savings.
Mutual funds pools funds and assets from different investors and then invest these funds in different financial securities and assets like bonds, stocks etc.
(Note that you have posted two different questions 9 and 10. Bartleby's guideline is to answer 1 question per post. Hence I have answered q. 9. Please post question 10 separately. Many thanks).
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