Please answer 1-5

CHAPTER QUESTIONS What term describes a fund wherein the investment is pooled into a portfolio of securities? A. Hedge Fund B. Over-the-Counter Trade C. Mutual Fund D. Growth Fund E. Income Fund 1. In companies where the stocks are classified as either Growth/Income stocks or Income stocks, investors either require dividends or have an expectation of receiving them. How do dividends differ from interest payments? A. The SEC requires that dividends be paid before interest it paid B. The company typically produces a profit before interest payments are made C. Interest is a tax-deductible expense, but dividends are not D. Dividend payments are paid only to common stock shareholders E. All the above F. None of the above 2. Early stage companies (often referred to as start-ups) usually obtain their initial funding from: A. 3. High interest loans obtained from consumer lending agencies "Friends & Family" B. C. Venture Capital Firms State and Municipal Governments D. E. Local commercial banks The term used for the process involved when a private company decides to make shares of their stock available to the public is: A. Over-the-Counter Trading B. Initial Public Offering C. Initial Private Offering D. Stock split E. A greenshoe option 4. 5. The sub-prime mortgage crisis was the result of Relaxed standards of lending designed to facilitate the purchase of homes by lower income citizens More exotic investment vehicles that encouraged mortgage brokers to process more mortgages A. B