Question :
84.A “dealer market” is:
a.when buyers and sellers contact each other : 1325681
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
91.____ represents the amount of cash that would remain if a firm’s assets were sold and all liabilities were paid.
a.book value
b.market value
c.liquidation value
d.present value
e.none of the above
92.____ represents the value of a firm’s equity shown on its balance sheet.
a.book value
b.market value
c.liquidation value
d.present value
e.none of the above
93.Which of the following statements is false?
a.P/E ratios are widely reported in the financial press and they are very easy to interpret.
b.As the value of the dividend growth rate rises, the P/E ratio falls.
c.A firm with a higher P/E ratio always has greater growth prospects than a firm with a lower P/E ratio.
d.All of the above statements are false.
e.Only (b) and (c) are false
