Ch17 – Flashcards
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The value expressed as total STOCKholders EQUITY DIVIDEND by the total NUMBER of SHARES of stock ISSUED
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What is a stocks book value
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Global Small Growth Fund
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Jessica Jenkins a 30-year-old history teacher planned to invest $10,000 in equity mutual funds she wanted a fund with maximum geographical diversification Jessica was seeking hi capital gains from her investment and most comfortable with a fair amount of risk" which of the following types of mutual fund would Jessica most likely choose
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A compensating balance
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Trina is a loan borrower and the terms of her loan say she must keep a portion of the loan amount on deposit with the bank in a non-interest-bearing account what is Trina required to have
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Inside trading
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"I'm a chemist with the nations largest chemical company we have secretly developed a cure for three of the worlds most serious epidemics before this news breaks out I'm going to buy as many shares of stock in my company as I can get my hands on then I'll sit back and watch the stock price head for the sky what is this person making this statement about to engage in
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Asset allocation
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What is the term for the proportion of funds invested in each of several investment ALTERNATIVES
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Dow Jones Industrial Average
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Tonio has some stocks and is carefully watching the stock market which of the following should he pay attention to in order to find out the performance of the LARGEST companies
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Underwriting Purchases of Stocks and Bonds
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Which of the following is a fUnction Performed by an inveStment Bank
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Invest $10,000 and a LARGE cap MUTUAL FUND
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Twenty six -year-old Lisa Lamont became an investor one day after a friend explain that there was a much better way to make her money work for her then by letting it sit in a savings account earning a very low rate of interest Lisa decided to withdraw $10,000 from her savings account and invested in stocks she wanted to invest it in such a way as to minimize her risk which of the following strategies makes the most sense for a new investor like Lisa
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Corporate raider
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The stock of Simonsen Inc. is being bought by an individual who intends to take over Simonsen and sell off its assets for profit what is the individual in this scenario called
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Corporate bond
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Which of the following is a formal pledge and IOU obligating the issuer to pay interest periodically and repay the principal at maturity a preset future date to the lender
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Stock split
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What is the term for a division of stock they give stockholders a greater number of shares put does not change each individual's proportionate share of ownership
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NASDAQ
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Which stock exchaNge hAS the highest volume of shares tradeD
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Stock
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Which of The following is the name for a portion of the ownership of A corporation
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Diversification
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What is the term for buying several DIFFERENT kinds of investments rather than just one
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Divide the CURRENT DIVIDEND payment plus CAPITAL GAIN by the original investment
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Kim has investments in stocks and wants to calculate her total return what should she do
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Electronic communication networks ECNs
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Which of the following after hours trading and protects traders Anonymity
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Capital gains
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The profit realized when the market value of an investment increases is known as which of the following
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The CURRENT PRICE of a share of stock in the stock market
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What is a stocks MARKET value
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Stocks are among the RISKIEST of all investments
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Which of the following statements is true about common stocks as investments
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$2.68
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If you purchased a share of GE stock for $33.82 then sold it one year later for $36.50 what would the price appreciation be
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Prospectus
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Before allied corporation sells security it is required by law for to offer future investors the opportunity to read through a document which contains complete information on both the offered security and the wrought issuing company what is that required document called
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Dow Jones industrial average
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Which is the most WIDELY cited US stock market index
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10.3%
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Tim wants to invest in stocks and bonds that will double his money in seven years which of the following interest rate should he be targeting
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Sell certain winning stocks to realize a profit and put the cash to work buying stock when prices are low
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Marco is a bullish investor but the stock market is currently bearish what is Marco most likely to do
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Prospectus
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Dynamo Motors has begun to sell corporate securities Dynamo is required by law to offer future investors the opportunity to read a document that contains complete information on both the new issue and the corporation itself what is that required document called
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The rule of 72
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The time it takes to double and investment can be estimated by using which of the following
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The firms current assets are LARGE enough to PAY OFF current liabilities
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Diamond electronics has a certain that it is has positive working capital which of the following must be true of diamond electronics
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Standard and poors 500
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Which of the following is considered by many to be the best SINGLE indicator of the US equities market
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You can actually lose money with bank savings due to inflation and taxes
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Don Dylan is a 24-year-old graphic designer he eventually wants to get Mary raise a family and buy a house he knows that he has to start putting money away so that his goals can someday become a reality he has heard that investing is risky because you can lose money as well as make money so Don decides to play it safe and the posit money in a bank on a regular basis why am I this not be his best strategy
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Compound growth
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While it's invested money GROWS by earning interest or yielding some other form of return what is this known as
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Current dividend yield
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Which of the following is figured by DIVIDING the yearly dollar amount or dividend income by the investments current market value
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She is interested in the BEST POSSIBLE RETURNS over time
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SHAWNA has gotten into investing and is interested in aggressive growth funds which of the following must be true about Shawna
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Diversification
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Javier wants to invest but wants to reduce his risk of loss by spreading The total investment across more stocks Javier would be most interested in which of the following
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Working capital = current assets -current liabilities
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What is the formula for measuring a firms WORKING CAPITAL
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Conservative
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Hugh is an investor who ups for no risk US treasury bills and intermediate term high-grade corporate bonds what KIND of INVESTOR is Hugh
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NASDAQ
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Which of the following is AN electronic Securities exchange