Question 1(1 point)

The main difference between preferred stocks and bonds is that preferred stock the flows are forever, even if the stock is not callable. Ture or false?

Question 1 options:

True

False

Question 2(1 point)

Pricing of closed-end funds is different from the pricing of open-end funds: the market price can differ from the NAV. True or false?

Question 2 options:

True

False

Question 3(1 point)

An American Depository Receipt (ADR)

Question 3 options:

A)

represents ownership of one or more shares of a foreign stock

B)

is a type of Exchange Traded Fund (ETF)

C)

is debt issued by a commercial bank

D)

is debt of the U.S. government sold to overseas investors

Question 4(1 point)

Organized stock exchanges are not important in the modern economies. True or false?

Question 4 options:

True

False

Question 5(1 point)

A market-maker

Question 5 options:

A)

buys and sells securities out of his own inventory

B)

is able to view limit orders that have not yet been executed, making him privy to information unavailable to other traders.

C)

matches buyers and sellers for security transactions

D)

both A and B

Question 6(1 point)

When an investor has borrowed part of his investment money from his broker, he has executed a

Question 6 options:

A)

short sale

B)

limit order

C)

margin transaction

D)

prime loan

Question 7(1 point)

Technical analysis shows the intrinsic value and market value of the financial assets those which are underpriced or over-priced can be identified. True or false?

Question 7 options:

True

False

Question 8(1 point)

Which of the following assets are included in the asset class, CASH, according to the definitions used in this book?

Question 8 options:

A)

municipal bonds

B)

certificates of deposit

C)

long-term Treasury bonds

D)

both B and C

Question 9(1 point)An order to buy or sell at the prevailing price is called a

Question 9 options:

A)

limit order

B)

margined order

C)

good-til-cancelled order

D)

market order

Question 10(1 point)

Which of the following events results in an inflow of money to the financial markets?

Question 10 options:

A)

reverse mergers

B)

share repurchases

C)

dividend payments

D)

delistings