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81.One of the most time-consuming aspects of preparing for an

Question : 81.One of the most time-consuming aspects of preparing for an : 1404050

 

 

81.One of the most time-consuming aspects of preparing for an equity offering is:

a.preparing the necessary documents for filing with regulators.

b.putting on the road show so that managers can pitch their business plan to prospective investors.

c.oversubscribing the offering.

d.none of the above

 

 

 

82.A Green Shoe option is:

a.the option of the issuing firm to buy back stock from a select group of stockholders.

b.the option to sell more shares than were originally planned.

c.the option to use a selling group to distribute shares of stock.

d.the option to sell fewer shares than were originally planned.

 

 

 

83.When evaluating the secondary market based upon how the securities are traded, we can divide the market into two segments:

a.a bull market and a bear market.

b.a stock market and a bond market.

c.a primary market and a secondary market.

d.a broker market and a dealer market.

 

 

 

84.A "dealer market" is:

a.when buyers and sellers contact each other directly to arrange an exchange of securities.

b.a market in which the buyer and seller are not brought together directly but, rather, have their orders executed by securities dealers.

c.a market in which buyers and sellers are brought together on a securities exchange to trade securities.

d.none of the above

 

 

 

85.A "broker market" is:

a.when buyers and sellers contact each other directly to arrange an exchange of securities.

b.a market in which the buyer and seller are not brought together directly but, rather, have their orders executed by securities dealers.

c.a market in which buyers and sellers are brought together on a securities exchange to trade securities.

d.none of the above

 

 

 

86.Which of the following would NOT fall under the classification of a broker market?

a.New York Stock Exchange

b.American Stock Exchange

c.NASDAQ

d.All of the above are classified as broker markets

 

 

 

87.Pink Sheets refer to:

a.the confirmation notice an investor receives notifying them that their transaction has occurred.

b.the unregulated section of the market where companies are not required to file with the SEC.

c.an electronic quotation system linking the market makers that trade the shares of small companies that is regulated by the SEC.

d.the biggest dealer market that uses an electronic trading system to facilitate dealer transactions.

e.none of the above

 

 

 

88.What is the term that represents the abbreviation used to identify a company when its stock price is being quoted?

a.CUSIP

b.Ticker tape

c.Ticker symbol

d.none of the above

 

 

 

89.For the zero growth model:

a.because the valuation formula reduces to the equation for the present value of a perpetuity the process is essentially the same for valuing preferred stock.

b.because the valuation formula reduces to the equation for the future value of a perpetuity the process is essentially the same for valuing preferred stock

c.because the valuation formula reduces to the equation for the present value of an ordinary annuity, the process is essentially the same for valuing preferred stock.

d.because the valuation formula reduces to the equation for the future value of an ordinary annuity, the process is essentially the same for valuing preferred stock.

 

 

 

90.When determining the stock price if a firm never plans to pay a dividend:

a.then it cannot have value

b.then there must be an expectation that the firm will distribute cash to the investors at some point in the future

c.a very precise process is used that requires little in terms of future estimates of cash flows

d.all of the above

e.none of the above

 

 

 

 

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