Business

Urvashi owns 10 shares of Kloud Komputing stock, with a market value o

QUESTION Urvashi owns 10 shares of Kloud Komputing stock, with a market value of $500 per share. The company issues a 2-for-1 stock split. After the split, what is the total value of Urvashi’s stake in Kloud Komputing? A) $10,000 B) $2,500 C) $5,000 D) $1,000 E) $20,000   ANSWER Answer: C Explanation: C) In […]

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Date: September 3rd, 2020

A biotech company is planning to build a new manufacturing plant. The

QUESTION A biotech company is planning to build a new manufacturing plant. The board is weighing the advantages and disadvantages of going public and issuing stock to raise funds. Which of the following does NOT describe a factor of this stock issue? A) The company avoids incurring additional debt by issuing stock. B) The company […]

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Date: September 3rd, 2020

What is the world’s largest stock exchange? A) NASDAQ B) American Sto

QUESTION What is the world’s largest stock exchange? A) NASDAQ B) American Stock Exchange C) over-the-counter market D) New York Stock Exchange E) Boston Stock Exchange   ANSWER Answer: D Explanation: D) The NYSE was established in 1792 and accounts for about 45 percent of all stock trading done in the United States.

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Date: September 3rd, 2020

Which of the following is NOT true of a stock exchange? A) It can exe

QUESTION Which of the following is NOT true of a stock exchange? A) It can execute stock trades via brokers on a trading floor. B) It can sell stocks issued directly from corporations. C) It can link buyers and sellers of stock directly. D) It can focus on trading stock of particular types of companies. […]

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Date: September 3rd, 2020

Gloria likes to be able to vote on major issues that are being conside

QUESTION Gloria likes to be able to vote on major issues that are being considered by companies she invests in. What type of securities should Gloria buy? A) secured bonds B) preferred stock C) callable bonds D) common stock E) convertible bonds   ANSWER Answer: D Explanation: D) With common stock, stockholders are able to […]

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Date: September 3rd, 2020

Which term does NOT belong in this list? A) NYSE B) AMEX C) ECNs D) O

QUESTION Which term does NOT belong in this list? A) NYSE B) AMEX C) ECNs D) OTC market E) the Dow   ANSWER Answer: E Explanation: E) The NYSE (New York Stock Exchange), AMEX (American Stock Exchange), electronic communications networks (ECNs), and over-the-counter (OTC) market are all secondary markets for securities. The Dow Jones Industrial […]

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Date: September 3rd, 2020

Hassan is a strong advocate of self-empowerment and efficiency. When b

QUESTION Hassan is a strong advocate of self-empowerment and efficiency. When buying and selling securities, he wants to avoid the “middleman” and conduct transactions himself. Where can he do this? A) New York Stock Exchange B) electronic communications networks C) over-the-counter market D) NASDAQ E) American Stock Exchange   ANSWER Answer: B Explanation: B) Electronic […]

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Date: September 3rd, 2020

Chad believes that the stock for the Marvelous Marble Company is under

QUESTION Chad believes that the stock for the Marvelous Marble Company is underpriced. He expects that children are going to love playing with marbles soon and decides to buy a large amount of Marvelous stock. What helped Chad determine that the stock is underpriced? A) The stock’s book value is close to the market value. […]

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Date: September 3rd, 2020

For years, the images of brokers shouting and scrambling on the floor

QUESTION For years, the images of brokers shouting and scrambling on the floor of the New York Stock Exchange have offered an exciting perspective on the intensity of trading stocks under volatile conditions. Which of the following threatens to end the practice of floor trading on the NYSE? A) expansion of the over-the-counter market B) […]

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Date: September 3rd, 2020