金融市场与机构-(11)

Chapter11TheStockMarketMultipleChoiceQuestions1.(I)Ashareofcommonstockinafirmrepresentsanownershipinterestinthatfirm.(II)Ashareofpreferredstockisasmuchlikeabondasitislikecommonstock.(a)(I)istrue,(II)false.(b)(I)isfalse,(II)true.(c)Botharetrue.(d)Botharefalse.Answer:C2.Preferredstockholdersholdaclaimonassetsthathaspriorityovertheclaimsof(a)bothcommonstockholdersandbondholders.(b)neithercommonstockholdersnorbondholders.(c)commonstockholders,butafterthatofbondholders.(d)bondholders,butafterthatofcommonstockholders.Answer:C3.(I)Preferredstockholdersholdaclaimonassetsthathaspriorityovertheclaimsofcommonstockholders,butafterthatofbondholders.(II)Firmsissuepreferredstockinfargreateramountsthancommonstock.(a)(I)istrue,(II)false.(b)(I)isfalse,(II)true.(c)Botharetrue.(d)Botharefalse.Answer:A4.(I)Preferredstockholdersholdaclaimonassetsthathaspriorityovertheclaimsofcommonstockholders.(II)Bondholdersholdaclaimonassetsthathaspriorityovertheclaimsofpreferredstockholders.(a)(I)istrue,(II)false.(b)(I)isfalse,(II)true.(c)Botharetrue.(d)Botharefalse.Answer:C136Mishkin/Eakins•FinancialMarketsandInstitutions,FifthEdition5.(I)Firmsissuecommonstockinfargreateramountsthanpreferredstock.(II)Thetotalvolumeofstockissuedismuchlessthanthevolumeofbondsissued.(a)(I)istrue,(II)false.(b)(I)isfalse,(II)true.(c)Botharetrue.(d)Botharefalse.Answer:C6.Theriskiestcapitalmarketsecurityis(a)preferredstock.(b)commonstock.(c)corporatebonds.(d)Treasurybonds.Answer:B7.Organizedexchangesaccountforabout_________percentofthetotaldollarvolumeofdomesticstocksharestraded.(a)30(b)45(c)60(d)70Answer:D8.Organizedexchangesaccountforabout_________percentofthetotaldollarvolumeofdomesticstockstraded.(a)60(b)70(c)80(d)90Answer:B9.(I)ThelargestoftheorganizedstockexchangesintheUnitedStatesistheNewYorkStockExchange.(II)TobelistedontheNYSE,afirmmusthaveaminimumof$100milliondollarsinmarketvalueor$10millioninrevenues.(a)(I)istrue,(II)false.(b)(I)isfalse,(II)true.(c)Botharetrue.(d)Botharefalse.Answer:A10.TolistontheNYSE,afirmmust(a)haveearningsofatleast$100millionforeachofthelastthreeyears.(b)haveatleast$500millionofmarketvalueand$100millionofrevenue.(c)haveatotalof$100millioninmarketvalueofpubliclytradedshares.(d)meetalloftheaboverequirements.(e)meet(a)and(b)oftheaboverequirements.Chapter11TheStockMarket137Answer:E138Mishkin/Eakins•FinancialMarketsandInstitutions,FifthEdition11.Securitiesnotlistedononeoftheexchangestradeintheover-the-countermarket.Inthisexchange,dealers“makeamarket”by(a)buyingstocksforinventorywheninvestorswanttosell.(b)sellingstocksfrominventorywheninvestorswanttobuy.(c)doingbothoftheabove.(d)doingneitheroftheabove.Answer:C12.Themostactivestockexchangeintheworldisthe(a)NikkeiStockExchange.(b)LondonStockExchange.(c)ShanghaiStockExchange.(d)NewYorkStockExchange.Answer:A13.Whichofthefollowingstatementsabouttradingoperationsinanorganizedexchangearecorrect?(a)Floortradersalldealinawidevarietyofstocks.(b)Inmosttrades,specialistsmatchbuyandsellorders.(c)Inmosttrades,specialistsbuyfororsellfromtheirowninventories.(d)TheSuperDOTsystemisusedtoexpeditelargetradesofover100,000shares.Answer:B14.WhichofthefollowingisnotanadvantageofElectronicCommunicationsNetworks(ECNs)?(a)AllunfilledordersareavailableforreviewbyECNtraders.(b)TransactionscostsarelowerforECNtrades.(c)Tradesaremadeandconfirmedfaster.(d)ECNsworkwellforthinlytradedstocks.Answer:D15.WhichofthefollowingstatementsisfalseregardingElectronicCommunicationsNetworks(ECNs)?(a)ArchipelagoandInstinetaretwoexamplesofECNs.(b)CompetitionfromECNshasforcedNASDAQtocutitsfees.(c)Tradersbenefitfromlowertradingcostsandfasterservice.(d)ECNsallowinstitutionalinvestors,butnotindividuals,totradeafterhours.Answer:D16.Abasicprincipleoffinanceisthatthevalueofanyinvestmentis(a)thepresentvalueofallfuturenetcashflowsgeneratedbytheinvestment.(b)theundiscountedsumofallfuturenetcashflowsgeneratedbytheinvestment.(c)unrelatedtothefuturenetcashflowsgeneratedbytheinvestment.(d)unrelatedtothedegreeofriskassociatedwiththefuturenetcashflowsgeneratedbytheinvestment.Answer:AChapter11TheStockMarket13917.Astockcurrentlysellsfor$25pershareandpays$0.24peryearindividends.Whatisaninvestor’svaluationofthisstockifsheexpectsittobesellingfor$30inoneyearandrequires15percentreturnonequityinvestments?(a)$30.24(b)$26.30(c)$26.09(d)$27.74Answer:B18.Astockcurrentlysellsfor$30pershareandpays$1.00peryearindividends.Whatisaninvestor’svaluationofthisstockifheexpectsittobesellingfor$37inoneyearandrequires12percentreturnonequityinvestments?(a)$38(b)$33.50(c)$34.50(d)$33.93Answer:D19.Intheone-periodvaluationmodel,astock’svaluewillbehigher(a)thehigherisitsexpectedfutureprice.(b)thelowerisitsdividend.(c)thehigheristherequiredreturnoninvestmentsinequity.(d)alloftheabove.Answer:A20.Intheone-periodvaluationmodel,astock’svaluefallsifthe_________rises.(a)dividend(b)expectedfutureprice(c)requiredreturnonequity(d)currentpriceAnswer:C21.Inthegeneralizeddividendvaluationmodelastock’svaluedependonlyon(a)itsfuturedividendpaymentsanditsfutureprice.(b)itsfuturedividendpaymentsandth