QUESTION 6

A __________ order instructs the broker to buy 50 shares of company A when it reaches a price of $50.

		limit buy
		limit sell
		market buy
		option

QUESTION 7

Research on determinants of stock value, i.e. earnings, dividend prospects, future interest rate expectations and firm risk, which assumes the stock price is equal to the discounted value of expected future cash flows.

		Prospectus research
		Fundamental analysis
		Technical analysis
		All of the above

QUESTION 8

The following principles are learned from the CAPM ...

		Investors should not diversify because they can't eliminate risk.
		Systematic risk is the risk that matters.
		A well diversified risky portfolio can't be suitable for risk averse investors.
		Only 1 and 2

QUESTION 9

For company B, the bid price is $45.99 and the ask price is $48.87.

If you have submitted an order to your broker to buy at market. At what price will your trade be executed?

QUESTION 10

A group that is formed by many investment banks, which is led by a lead underwriter, to issue an IPO to the public markets.

		Initial public offering
		Underwriting syndicate
		Prospectus
		Shelf registration