1. Depending upon the circumstances, equity can also be referred to as:

A. ordinary shares

B. common stock

C. risk capital

D. shareholders' funds.

E. all of these.

2. Debt financing can be raised by firms in the ________markets.

A. money and share

B. bond and FX

C. share and derivative

D. money and bond

E. share and FX.

3. An initial public offering:

A. does not always raise additional equity funds for the business

B. is the initial sale of shares to the public

C. is also known as a 'float'

D. is the process by which shares become listed on the ASX

E. all of these.

4. In order to conduct a secondary market for shares, the ASX:

A. sets the rules for the admission of companies to the market

B. establishes trading and settlement arrangements

C. discloses trading information, such as individual share prices

D. promotes itself as a market for securities.

E. all of these.

5. A difference between ordinary and preference shares is:

A. preference dividends are payable only after ordinary dividends have been paid

B. preference dividends are tax deductible

C. preference dividends are a fixed amount

D. ordinary shares are less risky

E. preference shares have greater potential for capital gains.