31. The biggest holders of equity securities location. mutual funds.b. pension funds.c. international investors.d. households
32. Which ONE of the complying with statements is true about additional markets?a. In secondary sectors, exceptional shares of stock are bought and offered among investors.b. For an investor, the function of additional markets is to carry out profitability for the shares of securities they own. c. An energetic additional industry causes firms to sell their brand-new debt or equity concerns at a greater expense of funds.d. All of the over are true statements
33. Which ONE of the following statements is true about additional industries in the United States?a. In terms of full volume of task and also full capitalization of the firms detailed, the NASDAQ is the biggest in the civilization and the NYSE is the second largest. b. In regards to the number of suppliers detailed and shares traded on a day-to-day basis, NASDAQ is bigger than the NYSE. c. Firms noted on the NASDAQ tfinish to be, on average, larger in dimension, and also their shares profession more frequently than firms whose securities trade on NYSE.d. In the United States, most second sector transactions are done over the respond to.
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34. Which one of the following statements is NOT true about second markets?a. In terms of total volume of activity and also total capitalization of the firms provided, the NASDAQ is the biggest in the people and also the NYSE is the second biggest. b. In regards to the variety of service providers provided and shares traded on a day-to-day basis, the NASDAQ is larger than the NYSE. c. Firms provided on the NYSE tfinish to be, on average, larger in size and their shares trade even more frequently than firms whose securities profession on NASDAQ.d. In the USA, the majority of additional market transactions are done on among the many kind of stock exchanges.
35. In compariboy to the NYSE, a. NASDAQ has actually less providers listed.b. full share volume is lower on the NASDAQ.c. firms noted on the NASDAQ tend to be smaller sized.d. NASDAQ firms exceed NYSE provided firms in full capitalization.
36. Direct search markets are characterized bya. complete price information.b. considerable broker and dealer participationc. private placement transactions and also sale of common stock of small exclusive providers.d. a high level of performance.
37. The leastern efficient of all the different kinds of secondary markets is thea. auction industry.b. direct search market.c. dealer industry.d. broker industry.
38. Which one of the following statements is NOT true around broker markets?a. Brokers bring buyers and sellers together to earn a fee, dubbed a commission.b. Brokers" extensive contacts carry out them with a pool of price information that individual investors can not economically duplicate themselves.c. Investors have an impetus to hire a broker because they charge a commission that is much less than the cost of direct search.d. Brokers deserve to guarantee an order because they have an inventory of securities.
39. In brokered marketsa. the commission charged by brokers is a lower cost to buyers and also sellers than the expense of direct search.b. buyers and sellers are brought together for a transaction fee.c. brokers construct a pool of price indevelopment through their extensive contacts.d. All of the over are true of broker sectors.
40. Which ONE of the following statements is true around dealer markets?a. NYSE is the best-recognized example of a dealer market. b. A dealer market involves time-consuming search for a fair deal.c. The benefit of a dealer over a brokered market is that brokers cannot guarantee that an order will be executed promptly, while dealers deserve to bereason they have actually an inventory of securities.d. All of the over are true of dealer industries.
41. Dealer sectors are defined bya. no time-consuming search for a fair deal.b. a guarantee of order fulfillment because the dealer holds an inventory of securities.c. boosted sector effectiveness bereason dealers provide consistent bid and ask prices for securities.d. All of the above characterize dealer markets.
42. Which one of the following statements is NOT true around auction markets?a. In an auction industry, buyers and also sellers confront each other directly and also barobtain over price.b. The NASDAQ is the most efficient stockmarket in the USA.c. The New York Stock Exadjust is the best-recognized example of an auction market.d. The auctioneer in this situation is the specialist, who is designated by the exchange to recurrent orders placed by public customers.
43. Which among the adhering to statements is NOT true around prevalent stock?a. Common-stock holders can vote on the selection of the board of directors for the firm.b. Common stock is thought about to have actually no addressed maturity.c. Owners of widespread stock are guaranteed dividfinish payments by the firm.d. Common-stock holders have actually limited liability.
44. Which ONE of the following statements is true around common stock?a. Common stock is considered to have a resolved maturity.b. Owners of common stock are guaranteed dividfinish payment by the firm.c. Owners of common stock have actually the lowest-priority claim on the firm"s assets in the occasion of bankruptcy.d. Common-stock holders have limitless licapacity.
45. Which one of the following statements is NOT true about wanted stock?a. Preferred stock represents ownership in the firm.b. Owners of desired stock are not guaranteed dividend payments by the firm.c. Preferred stock dividends are addressed financial quantities phelp on a regular basis by the firm just prefer bond coupon payments.d. Preferred stock holders have restricted voting privileges family member to common-stock owners.
46. Which ONE of the complying with statements is NOT true about desired stock?a. Preferred dividfinish payments are addressed quantities paid on a regular basis by the firm, equivalent to the interest payments on corporate bonds.b. Preferred dividends are deductable from taxable income just favor the interest on bonds.c. Preferred stock holders have actually limited voting privileges relative to common-stock owners.d. While preferred stock is legally classified as perpetuities, some worries execute have actually a fixed maturity.
47. Owners of desired stocka. have restricted voting rights.b. normally get addressed dividend payments.c. are offered priority treatment over prevalent stock with respect to dividends payments and the clintends versus the firm"s assets in the event of bankruptcy or liquidation.d. All of the above statements are true.
48. Preferred stock is sometimes pertained to prefer a debt security becausea. legally desired stock is a debt security.b. desired dividend payments favor bond interemainder payments are addressed amounts regardmuch less of the firm"s income.c. desired dividends are deductable from taxable income just choose interest payments on bonds.d. wanted stock holders obtain a residual worth and not a stated worth.
49. Applying the valuation procedure to widespread stocks is even more tough than applying it to bonds becausea. the dimension and also timing of the dividfinish cash flows are much less particular than the coupon payments for bonds.b. common stocks have actually no final maturity day.c. unlike the rate of rerevolve, or yield, on bonds, the rate of rerotate on prevalent stock is not directly observable.d. All of the above are true.
50. Which among the complying with statements is NOT true around the general dividfinish valuation model?a. The version does not assume any type of specific pattern for dividend growth.b. It makes a particular presumption about once the stock is going to be offered later.c. The model calls for forecasting an unlimited number of dividends for a stock.d. All of the over are true.
51. Which ONE of the complying with statements is true about rapid expansion stocks?a. These are firms that thrive their sales at above-average prices and also are expected to execute so for a size of time.b. These are firms that flourish their income at above-average prices and also are meant to perform so for a length of time.c. They primarily pay dividends in the time of their fast expansion phase.d. Namong the over.
52. The 3 simplifying assumptions that cover the majority of stock development patterns location. dividends that stay constant over time, dividends that flourish at a consistent rate, and dividends that are equal to zero.b. dividends that have a zero-development price, dividends that flourish at a differing price, and also dividends that are equal to zero.c. dividends that remain consistent over time, dividends that thrive at a consistent price, and also dividends that have a combined expansion pattern.d. None of the above.
53. Which one of the complying with statements is NOT true around zero-expansion stocks?a. Dividend stays continuous over time.b. The cash circulation pattern resembles a perpetuity through a consistent cash circulation.c. Dividend payment pattern mirrors constant expansion over time.d. There is no growth in dividends over time.
54. Which one of the complying with statements is NOT true around constant-development stocks?a. Dividend remains consistent over time.b. Mature suppliers via a history of secure growth present this pattern.c. Dividends thrive at a constant rate each period forever before.d. Dividends that are to be paid out in the remote future have a really tiny current value and also include little bit to the stock"s price.
55. The constant-growth dividend model will administer invalid services whena. the growth price of the stock exceeds the compelled rate of return for the stock.b. the expansion rate of the stock is less than the compelled price of return for the stock.c. the growth price of the stock is smaller than 10%.d. None of the above.
88. Which of the complying with statements is true?A) In order for the continuous growth dividfinish model to correctly value a firm"s widespread stock, R have to be better than g.B) From a useful perspective, the expansion price in the continuous growth dividend model should be higher than the sum of the permanent price of inflation and also the long-term genuine growth rate of the economic situation.C) In order for the continuous expansion dividend version to properly worth a firm"s widespread stock, g must be greater than R.D) The consistent development dividend design deserve to be used properly to value the prevalent shares of a blended expansion stock.
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89. Which of the following statements about desired stock is false?A) Preferred stock has a higher-priority claim on the firm"s assets than common stock.B) Failure to pay dividends will lead to default.C) Preferred stock has a lower-priority case on the firm"s assets than the firm"s creditors in the occasion of default.D) Preferred stock frequently pays a fixed dividend.