32. Which among the complying with statements is true about secondary markets?a. In second markets, superior shares of stock are bought and sold amongst investors.b. For an investor, the role of secondary markets is to carry out profitability for the share of securities castle own. C. An active second market reasons firms to sell their brand-new debt or equity problems at a greater cost of funds.d. All of the over are true statements
33. Which among the following statements is true about an additional markets in the joined States?a. In state of full volume of activity and complete capitalization that the firms listed, the NASDAQ is the biggest in the world and also the NYSE is the 2nd largest. B. In regards to the variety of companies listed and share traded top top a day-to-day basis, NASDAQ is bigger than the NYSE. C. Firms listed on the NASDAQ have tendency to be, top top average, bigger in size, and their share trade much more frequently than firms whose securities trade on NYSE.d. In the joined States, most second market transactions room done end the counter.
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34. Which one of the following statements is not true about an additional markets?a. In state of full volume of task and full capitalization that the this firm listed, the NASDAQ is the largest in the world and the NYSE is the second largest. B. In regards to the variety of companies noted and share traded ~ above a day-to-day basis, the NASDAQ is larger than the NYSE. C. Firms listed on the NYSE often tend to be, ~ above average, bigger in size and their share trade an ext frequently than firms who securities profession on NASDAQ.d. In the united States, most secondary market transactions room done on among the plenty of stock exchanges.
35. In comparison to the NYSE, a. NASDAQ has less companies listed.b. Total share volume is reduced on the NASDAQ.c. Firms provided on the NASDAQ often tend to it is in smaller.d. NASDAQ this firm exceed NYSE provided firms in full capitalization.
36. Straight search sectors are characterized bya. Complete price information.b. Extensive broker and dealer participationc. Exclusive placement transactions and sale of common stock of tiny private companies.d. A high level of efficiency.
37. The least effective of all the different varieties of second markets is thea. Auction market.b. Direct search market.c. Dealer market.d. Broker market.
38. Which among the following statements is no true about broker markets?a. Brokers lug buyers and also sellers together to knife a fee, dubbed a commission.b. Brokers" considerable contacts provide them with a swimming pool of price information that separation, personal, instance investors might not financially duplicate themselves.c. Investors have actually an inspiration to rental a broker since they fee a commission that is much less than the price of direct search.d. Brokers have the right to guarantee an order since they have actually an inventory of securities.
39. In brokered marketsa. The commission fee by brokers is a lower expense to buyers and also sellers than the cost of direct search.b. Buyers and also sellers are carried together for a transaction fee.c. Brokers build a pool of price info through their comprehensive contacts.d. Every one of the over are true that broker markets.
40. Which among the complying with statements is true around dealer markets?a. NYSE is the best-known instance of a dealer market. B. A dealer market involves time-consuming find for a same deal.c. The advantage of a dealer over a brokered industry is the brokers cannot guarantee the an order will certainly be executed promptly, while dealers can since they have an inventory of securities.d. Every one of the over are true the dealer markets.
41. Dealer markets are characterized bya. No time-consuming search for a same deal.b. A insurance of stimulate fulfillment because the dealer stop an perform of securities.c. Enhanced market efficiency due to the fact that dealers provide consistent bid and ask prices because that securities.d. Every one of the over characterize dealer markets.
42. Which one of the complying with statements is not true around auction markets?a. In one auction market, buyers and also sellers challenge each other directly and bargain end price.b. The NASDAQ is the most effective stockmarket in the joined States.c. The new York stock Exchange is the best-known example of an auction market.d. The auctioneer in this situation is the specialist, that is designated by the exchange to stand for orders inserted by public customers.
43. Which among the adhering to statements is not true about common stock?a. Common-stock holders have the right to vote top top the choice of the board of directors because that the firm.b. Common stock is considered to have no solved maturity.c. Owners of common stock are guaranteed dividend payment by the firm.d. Common-stock holders have minimal liability.
44. Which among the following statements is true around common stock?a. Usual stock is considered to have a solved maturity.b. Owner of common stock are guaranteed dividend payment by the firm.c. Owner of typical stock have the lowest-priority claim on the firm"s legacy in the occasion of bankruptcy.d. Common-stock holders have unlimited liability.
45. Which one of the adhering to statements is not true around preferred stock?a. Desired stock represents ownership in the firm.b. Owner of wanted stock room not guaranteed dividend payment by the firm.c. Desired stock dividends are resolved financial quantities paid frequently by the firm similar to bond coupon payments.d. Preferred stock holders have minimal voting privileges loved one to common-stock owners.
46. Which among the complying with statements is no true about preferred stock?a. Desired dividend payments are fixed quantities paid consistently by the firm, comparable to the interest payments on that company bonds.b. Desired dividends are deductable native taxable income similar to the attention on bonds.c. Wanted stock holders have minimal voting privileges loved one to common-stock owners.d. While desired stock is legitimate classified together perpetuities, some issues do have a solved maturity.
47. Owner of desired stocka. Have restricted voting rights.b. Usually receive fixed dividend payments.c. Are given priority treatment over common stock with respect to dividend payments and also the claims against the firm"s legacy in the event of bankruptcy or liquidation.d. All of the above statements room true.
48. Wanted stock is periodically regarded like a debt defense becausea. Legally wanted stock is a blame security.b. Desired dividend payments like bond attention payments room fixed quantities regardless of the firm"s earnings.c. Preferred dividends space deductable from taxable income similar to interest payments on bonds.d. Desired stock holders get a residual value and not a declared value.
49. Using the valuation procedure to typical stocks is more challenging than applying it come bonds becausea. The size and also timing of the dividend cash flows room less details than the coupon payments because that bonds.b. Common stocks have actually no last maturity date.c. Unlike the price of return, or yield, top top bonds, the price of return on typical stock is not straight observable.d. Every one of the above are true.
50. Which one of the adhering to statements is no true around the basic dividend valuation model?a. The design does not assume any particular pattern because that dividend growth.b. It provides a specific assumption around when the stock is going to be offered in the future.c. The design calls for forecasting an infinite number of dividends for a stock.d. Every one of the over are true.
51. Which among the complying with statements is true about fast expansion stocks?a. These space firms that prosper their sales at above-average rates and are expected to execute so for a size of time.b. These are firms that grow their earnings at above-average rates and are intended to carry out so for a length of time.c. They normally pay dividends during their fast growth phase.d. No one of the above.
52. The three simplifying assumptions that cover most stock expansion patterns area. Dividends that stay consistent over time, dividend that flourish at a continuous rate, and dividends that room equal come zero.b. Dividend that have actually a zero-growth rate, dividend that prosper at a differing rate, and also dividends that space equal to zero.c. Dividends that stay consistent over time, dividend that grow at a consistent rate, and dividends that have actually a mixed growth pattern.d. None of the above.
53. Which one of the complying with statements is not true about zero-growth stocks?a. Dividend stays constant over time.b. The cash circulation pattern each other a perpetuity v a continuous cash flow.c. Dividend payment sample shows consistent growth over time.d. There is no development in dividends over time.
54. Which one of the adhering to statements is no true around constant-growth stocks?a. Dividend stays continuous over time.b. Mature carriers with a background of secure growth show this pattern.c. Dividends flourish at a consistent rate each period forever.d. Dividend that are to it is in paid the end in the remote future have a very little present value and also add little to the stock"s price.
55. The constant-growth dividend design will administer invalid solutions whena. The growth rate of the stock exceeds the compelled rate the return for the stock.b. The expansion rate that the share is much less than the required rate that return for the stock.c. The growth rate that the share is smaller than 10%.d. No one of the above.
88. I beg your pardon of the complying with statements is true?A) In order because that the constant growth dividend model to effectively value a firm"s typical stock, R should be greater than g.B) indigenous a handy perspective, the expansion rate in the constant growth dividend version must be higher than the sum of the irreversible rate of inflation and the permanent real expansion rate that the economy.C) In order for the continuous growth dividend design to properly value a firm"s common stock, g have to be better than R.D) The consistent growth dividend model can be used properly to worth the typical shares of a mixed growth stock.
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89. I m sorry of the following statements about preferred stock is false?A) preferred stock has a higher-priority insurance claim on the firm"s assets than usual stock.B) failure to pay dividend will result in default.C) preferred stock has actually a lower-priority claim on the firm"s assets 보다 the firm"s creditor in the event of default.D) preferred stock commonly pays a addressed dividend.