Standing sell order that bids the highest price bid.. Standing sell order that bids the highest price bid.. Standing sell order that has the lowest price offer C.. Standing sell order th
Trang 1can benefit from the growth in the value of the firm Owners of stock
Owners of bonds Certificates of deposit All of above
Which stock is issued by firms in the primary market to obtain long-term funds? A Common stock
B Preferred stock C A&B are correct D A& B are incorrect
What will the purchaser of stock become? A Creditors
B Manager C Staff
D A part owner of the firm
How many Finacial Institutions in Stock Markets participants will issue stock to boost their capital base?
A 5 B 6
What are the orders?
A Orders are instructions to trade that traders give to brokers and exchanges that arrange their trades
B Orders are instructions to trade that traders give to organizations and exchanges that arrange their trades
C Orders are instructions to trade that traders give to bankers and exchanges that arrange their trades
D Orders are instructions to trade that traders give to managers and exchanges that arrange their trades
Trang 2A Buy order specifying a price B Sell order specifying a price
C Standing buy order that bids the highest price bid D Standing sell order that bids the highest price bid The best Bid is:
A Buy order specifying a price B Sell order specifying a price
C Standing buy order that bids the highest price bid D Standing sell order that bids the highest price bid The best offer is:
A Standing buy order that has the lowest price offer B Standing sell order that has the lowest price offer C Standing buy order that bids the highest price bid D Standing sell order that bids the highest price bid What do Finance companies do in the Stock Market? A Manage trust funds that usually contain stocks B Issue stock to boost their capital base C Place new issue of stocks
D Invest in stocks for their investment portfolios The Stock Market is a part of the:
A Credit Market B Interbank Market C Capital Market D Open Market
What do Insurance companies do in the Stock Market? A Issue stock to boost their capital base
B Invest a large proportion of their premiums in the stock market C A&B are correct
D A& B are incorrect
Orders are instructions to trade that give to and exchanges that arran ge their trades
A Traders, brokers B Investors, traders C Brokers, traders D Owner of stocks, brokers
What is the priority of matching orders in the trading session? A Time, price, quantity
Price, time, quantity Quantity, time, price Time, quantity, price
Trang 3A Ata price higher than the prevailing market price B Ata price lower than the prevailing market price C Either higher or lower than the current market price D Right at the current field value
Spread is:
A The difference between the best ask and the best bid or the inside spread B The difference between ask and bid
C Sell order specifying price
D Standing buy order that bids the highest price bid
After a broker accepts an order but before it is filled or canceled, the order is: A Standing order
B Pending order C Working order D None of them
The execution of a market order depends on its and on the currently availa ble in the market
A Price, liquidity B Size, liquidity C Brokers, price
D Best price, liquidity
A order is an instruction to trade at the best price available, but only if it is no worse than the limit price specified by the trader
A — Limit order B Stop order C — Stop limit order D Market order
For a limit buy order, the limit price specifies a A Minimum price
B Maximum price C Same price
D None of them is correct
For a limit sell order, the limit price specifies a A Minimum price
B Maximum price C Same price
D None of them is correct
Trang 4When does the stop order activate?
A The price of the stock reaches or passes through a stop price B The price of the stock doesn’t reach or pass through a stop price C Activate at anytime
D The price of the stock is about to reach a stop price When should the trader buy and sell the market order? A Only after the price rises to the stop price B Only after the price falls to the stop price C Both A&B
D None of them
Orders are to trade that traders give to brokers and exchanges that arrange their tr ades
A Instructions B Advice C Actions D Knowledge
Who do the traders give the orders to? A Brokers
B Sellers C Costumers D None
An order can include both the limit of price and the length of its valid A True
B Fale C Depend D None of above What is Spread?
A The difference between the best ask and the best bid B The rate between the best ask and the best bid C The value distance of the ask and the best bid D The price of the best ask
When does the trade price work? A Anytime
B When order fill C All of them D None of them
Owners of stock can benefit from the in the value of the firm reduction
growth decreasing A&C
Trang 5Common stock issued by firms in the primary market to obtain funds A Short-term
B Long-term C Intermediate term D All are wrong
Which are participants of Financial Institutions in Stock markets? A Commercial Banks
B Stock—owned savings institutions C Saving banks
D All are correct
The process of going public is
A Developing a prospectus, pricing, allocation of IPO shares, transaction cost B Pricing, allocation of IPO shares, transaction cost, developing a prospectus C Allocation of IPO shares, transaction cost, developing a prospectus, pricing D Allocation of IPO shares, developing a prospectus, pricing, transaction cost
In step 1, the prospectus contains A Detailed information about the firm B Includes financial statements C Adiscussion of the risk invoiced D All are correct
In step 2, the offer price also may be influenced by A Prevailing market
B Industry conditions C All are correct D All are wrong
A firm that wants to engage in a secondary stock offering must file the offering with the A SEC
B Government C Bank
D Investment company
Read and answer the following questions (41 to 44)
Harry wants to sell 7,600 shares of Exxon Mobil (XOM) at no less than 41.05 dollars per share, but only if he can trade during the current trading session and only if he can trade the entire quantity at once
He would issue an all-or-nothing, day order to sell 7,600 shares of XOM, a limit of 41.05 dollars
What is the side of the order? A Buy
B Sell C All are wrong
Trang 6D All are correct
Which is limiting the prices that Harry will accept? A 41,05$/ 1 stock
B 40$/ 1 stock C 41.5$/ 1 stock D 42.5$/ 1 stock How long the order is valid?
A Current trading session B Week trading session C Day trading session D All are wrong
Whether it is okay to partially fill the order: A Quantity at once
B Can’t order it C Depend D None of them
Market quotation ( quote ) reports: A The best bid
B The best offer
C The best bid and the best offer D All are wrong
Spread is the A Difference B Similar C Argument D Different
Prices are if the traders who offer them can revise them before trading A Firms
B Soft C Best Bid D Best Offer
: the price at which orders fill A Trade price
B Standing orders C Pending order D Best offer
. _ are open offers to trade A Trade price
B Standing orders C Pending order D Best offer
Which is an order after a broker accepts an order, but before it is filled or canceled? Standing orders
Pending orders Working orders Trade price
between the best ask and the best bid or the inside spread ( touch)
Trang 7
51 Proprietary orders are orders that traders represent for A Their own accounts
B Their clients C Account D Their brokers
52 The best offer is an order that standing sells order thathasthe _ price offer A Highest
B Lowest C Average D Common
53 Amarket order is an instruction to trade at the price currently available in the market A Best
B Highest C Lowest D Good
54 Virtually unregulated in comparison to chartered banks and near banks, finance companie s have been able to tailor their loans to customer needs and have grown rapi dly
A very quickly B very slowly C normal D depend
55 Finance companies raise funds by (a short-term debt instrument) and by issuing stocks and bonds
A selling commercial paper B buying commercial paper C loans from bank D capital
56 are owned by a particular retailing or manufacturing company and make loan s to consumers to purchase items from that company
Sales finance companies Consumer finance companies Business finance companies None of them
57 make loans to consumers to buy particular items such as furniture or home app liances, to make home improvements, or to help refinance small debts
A Sales finance companies B Consumer finance companies C Business finance companies D None of them
Trang 8A Sales finance companies B Consumer finance companies C Business finance companies D None of them
What are the three types of finance companies? A sales, consumer, and business
B sales, bank, and business
C securities company, bank, the consumer D Sales, securities company, bank
Which funds sell shares and use the proceeds to buy securities? A Mutual funds
B Money market mutual funds C Hedge funds
D Venture capital funds
issue shares that can be redeemed at any time at a price tied to the asset value of the firm
A Open-end funds B Closed-end funds C A&B are correct D A&B are incorrect
issue nonredeemable shares, which are traded like common stock They are | ess popular than open-end funds because their shares are not as liquid
A Open-end funds B Closed-end funds C A&B are correct D A&B are incorrect
holds only short-term, high-quality securities, allowing shares to be redeeme dat a fixed value
Mutual funds
Money market mutual funds Hedge funds
Venture capital funds
are financial intermediaries that pool the resources of many small investors b y selling them shares and using the proceeds to buy securities
Trang 965 (Insuranee company) Insurance providers acquire funds by that pay out benef its if catastrophic events occur
A selling policies B buying policies C renting policies D borrowing policies
66 Life insurance companies insure people against financial hazards following death and (annual income payments upon retirement)
sell annuities Buy annuities Borrow annuities Rent annuities
67 They also purchase stocks that they can hold A but are restricted in the amount
B but are public in large numbers C but more expensive than the market D but cheaper than market
69 What is nonlife insurance’s largest holding of assets? A Governments bonds and debentures
B corporate bonds and stocks C Cash and stocks
D Cash and governments bonds
70 Brokerage firms engage in all three securities market activities, acting as A Brokers, dealers, and investment bankers
B Traders, brokers, manager C Traders, bankers, government D Brokers, dealers, government
71 Which funds are financial intermediaries that acquire funds at periodic intervals on a cont ractual basis?
A Pension funds B Mutual funds
C Money market mutual funds D Hedge funds
72 What pension funds tend to invest their funds primarily in long-term securities? A corporate bonds, stocks, and mortgages
B governments bonds, stocks, debentures C governments bonds, corporate bonds, stocks
Trang 10D governments bonds, stocks, debentures 73 What are the largest asset holdings of pension funds?
A corporate bonds and stocks B governments bonds and stocks C cash and stocks
D cash and debentures
74 What is the leasing company offers? A financial leasing services B stock buying services C bond buying services D B&C are correct
75, Financial leasing is a granting method for enterprises’ investment projects in the purchase of machinery, equipment, production lines, and means of transport A medium and long-term credit
B medium and short-term credit C medium and intermediate-term credit D all are wrong
76 Enterprises do not need to carry out procedures to mortgage assets like a normal loan, inst ead Leasing company keeps the during the lease-purchase credit period A ownership of the property
B stock ownership C bond ownership D all of them
77, Bonds are securities that are issued by government agencies or corporations A Long-term debt
B Short-term debt C Intermediate — tern dept D All are wrong
78 The issuer of a bond is obligated to ( or coupon) payments periodically (such as annually or semiannually) and the par value (principal) at maturity
A pay interest B pay dividend C pay shares D All are correct
79, Which bonds are issued by the U.S Treasury? A Treasury bonds
B Federal agency C Municipal bonds D Corporate bonds
Trang 1180 specify only a dollar amount of securities to be purchased( subject to a maximum limit)
A Noncompetitive bids B Competitive bids C A&B are correct D A&B are incorrect
81 specify a price that the bidder is willing to pay and a dollar amount of securities to be purchased
A Noncompetitive bids B Competitive bids C A&B are correct D A&B are incorrect
82 are a form of financial contract that sets forth the rights and/or obligations of the contracting parties to the payment or/and transfer of underlying assets at an agreed price advance at a certain time in the future
A Derivative securities B Fund certificate C Certificate of deposit D None of them
83 The underlying assets of derivative securities are divided into two main types: A Commodities and Financial instruments
B Financial instruments and Stocks C Financial instruments and Bonds D Stocks and Bonds
84 What are hedgers?
A Hedgers enter the market with the priority purpose of minimizing the risks they always face from possible adverse price fluctuations in the future
B Hedgers enter the market with the priority purpose of minimizing the risks they always face from possible adverse price fluctuations in the past
C Hedgers enter the market with the priority purpose of increasing the risks they always face from possible adverse price fluctuations in the future
D Hedgers enter the market with the priority purpose of increasing the risks they always face from possible adverse price fluctuations in the past
85 What if Speculators enter the market whose priority goal is?
A to make a profit based on the exchange rate movements over time of the underlying asset in the market
B to make a profit based on the price movements over time of the underlying asset in the market
C to make dividends based on the price movements over time of the underlying asset in the market
D to make a profit based on the declining price movements over time of the underlying asset in the market.
Trang 1286 What is an arbitrageur?
A An arbitrageur is an investor who seeks profit from market inefficiencies B An arbitrageur is an investor who seeks failure from market inefficiencies C An arbitrageur is an investor who seeks experience from market inefficiencies D An arbitrageur is an investor who seeks knowledge from market inefficiencies 87 The operation of the derivative market contributes to of securities on the
financial market A increasing the liquidity B reducing the liquidity C losing liquidity D all of them
88 Forward contract is an agreement/contract between in which a buyer and a seller agree to perform a goods transaction with a specified volume, at a specified time in the future for a fixed price today
A two parties B three parties C four parties D only one party
89 The forward transaction is so when it comes to the maturity date, despite the disadvantage, both parties still have to perform the contract
A amandatory transaction B a free transaction C dangerous transaction D None of them
90 Futures are calculated daily according to the market A daily price
B monthly price C yearly price D free price
91 A contract allows its holder to buy or sell a certain volume of a commodity at a specified price and for a specified period of time
A Forward contracts B Futures contract C Options contract D Swap contract
92.A legal arrangement in which two parties undertake to swap the cash flow of one financial instrument of one party with the cash flow of the other's financial instrument over a specified period of time
Forward contracts Futures contract Options contract Swap contract