Intro Business – Chapter 19 – Market Securities – Flashcards

Chipper's Golf Resort has learned that Rory McIlroy is interested in putting his name on golf course designs; however, in order for any golf course to be acceptable to him, it will cost a minimum of $20 million to build. Chipper's owners want an international presence, and they believe that "just the way golf club companies became publicly traded corporations, it may be time for golf courses to do the same." The plan is to begin to purchase real estate for four new golf resorts. Proceeding with their venture, the owners have calculated that they will need approximately $100 million. But putting together an IPO is another matter. After meeting with their investment banker, they believe that investors will be willing to pay $16/share for the IPO. As the ___________ for this issue, the investment bank requires 3% of the revenues generated by the sale. Chipper's will need to issue _______ shares in order to have the $100 million they need to proceed with their plan.

One criticism of the Dow Jones Industrial Average suggests that it:

A company's stock does not have to be listed on one of the major stock exchanges in order to trade. It can be traded on ____________.

Using information not available to the public to unfairly benefit in the stock market represents:

Before the announcement of a three-for-one stock split, the selling price for a share of stock in Olympia Oil Refineries was $150 per share. Immediately after the stock split, the probable price per share is:

Gerald, a recent graduate of a community college, is about to make his first investment in the stock market. Which of the following would be a cautious way for Gerald to start investing?

When an investor places a buy order with a stockbroker, the broker contacts a(n) __________ to complete the transaction.

Suzanne wants to purchase stock in a company that is headquartered in Germany. Suzanne:

____________ means that the mutual fund company does not show a fee or commission for investing in the fund.

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

The stock of well-known, high-quality firms, such as Coca-Cola, General Electric, and Procter & Gamble, fit the characteristics of ________ stocks, because investors can almost always be assured a dividend and consistent stock price appreciation.

Which of the following securities guarantees preferred stockholders payment of missed dividends before any dividends are paid to common stockholders?

Which of the following offers low risk, guaranteed income, backed by the full faith and credit of the federal government?

Government bonds can vary in denomination, but most corporate bonds are issued in ___________.

Ina Vestor has a brokerage account with one of the remaining large investment firms. This morning her broker called asking if she is interested in participating in an IPO. He went on to say that he could get her 200 shares for $23/share. If Ina agrees to buy the IPO, the trade will take place in the ____________.

Which of these represents a special feature included with some bond issues?

To reduce the risk of investing in an individual stock, an ownership position in many different companies can be achieved by purchasing shares in a(n):

Which of the following describes a mutual fund that charges no commission to buy or sell its shares?

Which of the following describes the process where an investor borrows a percentage of the purchase price of stocks from the brokerage firm?

By issuing bonds with a _______, the corporation retains the right to pay off the bond prior to the maturity date.