Security investment quiz chap 1

Security investment quiz chap 1

Difficulty: Easy II and IV D. GNMAs E. Market timing A, B, and C Theoretically, when firms are taken over, better managers come in and thus increase the price of the stock; existing management often must either leave the firm, be demoted, or suffer a loss of existing benefits. Commercial paper C. Can't tell from the information given A and B are correct. Which of the following financial assets made up the greatest proportion of the financial assets held by U. As efficient communication technology has become available, globalization of markets has been significantly enhanced. Top-down B. All of the above are derivative securities. A disadvantage of using stock options to compensate managers is that A. All of the above All are institutions that bring borrowers and lenders together. Country ETFs allow investors to trade portfolios that mimic foreign indices in the secondary markets.

Buildings C. Side-to-side Bodie - Chapter 01 21 Difficulty: Easy 7.

introduction to financial management questions and answers

Investment companies D. Securitization refers to aggregating underlying financial assets, such as mortgages, into pools and then offering a security that represents a claim on these underlying assets. III The banks that originated the mortgages maintain ownership of them. Real, financial D.

financial management multiple choice questions and answers doc

A corporate callable bond gives its holder the right to exchange it for a specified number of the company's common shares B. The Sarbanes-Oxley Act does all of the above.

Principles of finance quiz

Citigroup is an example B. C and D Unbundling is one of many examples of financial engineering that offer more alternatives to the investor. Stocks D. ADRs B. An important role of investment banks is to act as middlemen in helping firms place new issues in the market. The roles of the board of directors selected by the shareholders are to oversee management and to minimize agency problems. IV The banks that originated the mortgages continue to service them. Momentum C. Bonds B. Regulation B, which is still in existence B. Securitization allows investors to hold partial ownership in financial assets that would otherwise be beyond their reach e. All of the above are derivative securities. However, often these boards are figureheads, and individual shareholders do not own large enough blocks of the shares to override management actions. Can't tell from the information given Bodie - Chapter 01 31 Difficulty: Easy

Commercial paper 6. A municipal bond is a debt obligation issued by the Federal Government.

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