All the following is the difference between common stock and preferred stock EXCEPT A. Common stock is more liquid and marketable compare to preferred stock. B. Common stock can claim before the preferred stockholder in case of illiquidity. C. Common stock di vidend will be decided by the management. D. Preferred stock holder is less risky than the common stock holder.

The value of derivatives will have _______

A. the same direction as the changes in the underlying asset price. B. the opposite direction as the changes in the underlying asset price. C. the linear direction as the changes in the underlying asset price. D. None of the above

Yankee bond is _________ A. the bond issued in host country denominated in host country issued by foreign country. B. the bond issued in host country denominated in home country issued by foreign country. C. the bond issued in host country denominated in host country issued by local organization/government. D. the bond issued in home country denominated in host country issued by foreign country.

Bond with D rating means ______ A. it is an outstanding bond. B. high default risk. C. never fail paying bondholders interest and capital. D. the bond has a medium risk.

Which is TRUE about ratings of bonds? A. Rating done by investment bank. B. A rating of D means that the bond is in default. C. Letters such as AAA, AA, A, D and so on to indicate the type of the bonds issued by the issuers of the bonds. D. None of the above.

Choose the CORRECT answer. A. Growth industry refers to industry that their performance is expected to an average of all industries. B. Defensive industry refers to industry is would be affected to the economy situation. C. Cyclical industry refers to industry the industry that is if the market is boom the industry will perform well. D. Defensive industry such as construction industry, oil and gas industry.

Below are about lifecycle industry EXCEPT ________. A. in maturity stage their profit are become lesser B. in start-up stage, their investment more on Research and Development. C. in decline stage, their loyal customer will not move to substitute products or industry. D. in growth stage, their expected their earnings would be increased and they have their regular customers.

Which is true about the comparison between fundamental and technical analysis? A. Technical analysis is used to predict short-term price movements, while fundamental analysis is to gauge long-run values of securities. B. Technical analysis observe the changes in the price and volume, while fundamental analysis observe the earnings, dividends, profit margin, quality of management and the outlook for profit. C. Technical analysis will use chart pattern of stocks, while fundamental analysis by studying fundamental factors. D. All of the above.

The growth stage in industry analysis shows that ______. A. the firm does not expect much profit and even may be in losses from the sales of product B. a lot of resources are used to market the product C. the firm invest huge amount in advertising D. the firm does not have a new development on products and services.

Which is call option? A. Has a right to sell the underlying assets. B. Has a right to sell the option contract. C. Has a right to buy the underlying assets. D. Has a right to sell the option contract.