投资学题库Chap003

3-1Copyright©2014McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter03HowSecuritiesAreTradedMultipleChoiceQuestions1.ThetradingofstockthatwaspreviouslyissuedtakesplaceA.inthesecondarymarket.B.intheprimarymarket.C.usuallywiththeassistanceofaninvestmentbanker.D.inthesecondaryandprimarymarkets.2.ApurchaseofanewissueofstocktakesplaceA.inthesecondarymarket.B.intheprimarymarket.C.usuallywiththeassistanceofaninvestmentbanker.D.inthesecondaryandprimarymarkets.E.intheprimarymarketandusuallywiththeassistanceofaninvestmentbanker.3-2Copyright©2014McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.3.FirmsraisecapitalbyissuingstockA.inthesecondarymarket.B.intheprimarymarket.C.tounwaryinvestors.D.onlyondayswhenthemarketisup.4.Whichofthefollowingstatementsregardingthespecialistaretrue?A.Specialistsmaintainabooklistingoutstandingunexecutedlimitorders.B.Specialistsearnincomefromcommissionsandspreadsinstockprices.C.Specialistsstandreadytotradeatquotedbidandaskprices.D.Specialistscannottradeintheirownaccounts.E.Specialistsmaintainabooklistingoutstandingunexecutedlimitorders,earnincomefromcommissionsandspreadsinstockprices,andstandreadytotradeatquotedbidandaskprices.5.InvestmentbankersA.actasintermediariesbetweenissuersofstocksandinvestors.B.actasadvisorstocompaniesinhelpingthemanalyzetheirfinancialneedsandfindbuyersfornewlyissuedsecurities.C.acceptdepositsfromsaversandlendthemouttocompanies.D.actasintermediariesbetweenissuersofstocksandinvestorsandactasadvisorstocompaniesinhelpingthemanalyzetheirfinancialneedsandfindbuyersfornewlyissuedsecurities.3-3Copyright©2014McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.6.Inafirmcommitment,theinvestmentbankerA.buysthestockfromthecompanyandresellstheissuetothepublic.B.agreestohelpthefirmsellthestockatafavorableprice.C.findsthebestmarketingarrangementfortheinvestmentbankingfirm.D.agreestohelpthefirmsellthestockatafavorablepriceandfindsthebestmarketingarrangementfortheinvestmentbankingfirm.7.ThesecondarymarketconsistsofA.transactionsontheAMEX.B.transactionsintheOTCmarket.C.transactionsthroughtheinvestmentbanker.D.transactionsontheAMEXandintheOTCmarket.E.transactionsontheAMEX,throughtheinvestmentbanker,andintheOTCmarket.8.InitialmarginrequirementsaredeterminedbyA.theSecuritiesandExchangeCommission.B.theFederalReserveSystem.C.theNewYorkStockExchange.D.theFederalReserveSystemandtheNewYorkStockExchange.3-4Copyright©2014McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.9.YoupurchasedJNJstockat$50pershare.Thestockiscurrentlysellingat$65.YourgainsmaybeprotectedbyplacingaA.stop-buyorder.B.limit-buyorder.C.marketorder.D.limit-sellorder.E.Noneoftheoptions10.YousoldJCPstockshortat$80pershare.YourlossescouldbeminimizedbyplacingaA.limit-sellorder.B.limit-buyorder.C.stop-buyorder.D.day-order.E.Noneoftheoptions11.Whichoneofthefollowingstatementsregardingordersisfalse?A.Amarketorderissimplyanordertobuyorsellastockimmediatelyattheprevailingmarketprice.B.Alimit-sellorderiswhereinvestorsspecifypricesatwhichtheyarewillingtosellasecurity.C.IfstockABCissellingat$50,alimit-buyordermayinstructthebrokertobuythestockifandwhenthesharepricefallsbelow$45.D.Amarketorderisanordertobuyorsellastockonaspecificexchange(market).3-5Copyright©2014McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.12.RestrictionsontradinginvolvinginsiderinformationapplytothefollowingexceptA.corporateofficers.B.corporatedirectors.C.majorstockholders.D.Alloftheoptionsaresubjecttoinsidertradingrestrictions.E.Noneoftheoptionsissubjecttoinsidertradingrestrictions.13.ThecostofbuyingandsellingastockconsistsofA.broker'scommissions.B.dealer'sbid-askedspread.C.apriceconcessionaninvestormaybeforcedtomake.D.broker'scommissionsanddealer'sbid-askedspread.E.broker'scommissions,dealer'sbid-askedspread,andapriceconcessionaninvestormaybeforcedtomake.14.Assumeyoupurchased200sharesofGEcommonstockonmarginat$70persharefromyourbroker.Iftheinitialmarginis55%,howmuchdidyouborrowfromthebroker?A.$6,000B.$4,000C.$7,700D.$7,000E.$6,3003-6Copyright©2014McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.15.Yousoldshort200sharesofcommonstockat$60pershare.Theinitialmarginis60%.YourinitialinvestmentwasA.$4,800.B.$12,000.C.$5,600.D.$7,200.16.Youpurchased100sharesofIBMcommonstockonmarginat$70pershare.Assumetheinitialmarginis50%andthemaintenancemarginis30%.Belowwhatstockpricelevelwouldyougetamargincall?Assumethestockpaysnodividend;ignoreinterestonmargin.A.$21B.$50C.$49D.$8017.Youpurchased100sharesofcommonstockonmarginat$45pershare.Assumetheinitialmarginis50%andthestockpaysnodividend.Whatwouldthemaintenancemarginbeifamargincallismadeatastockpriceof$30?Ignoreinterestonmar