Question : 21) Which of the following part of the secondary market? A) : 1388231

21) Which of the following is part of the secondary market?

A) New York Stock Exchange

B) the over-the-counter market

C) NASDAQ

D) all of these

22) One of the most widely followed stock indexes in the United States is the Dow Jones Industrial Average. This index represents

A) the stock prices of 500 large U.S. firms.

B) an over-the-counter market.

C) the stock prices of more than 4,000 U.S. firms.

D) the stock prices of 30 large U.S. corporations.

23) When the coupon rate on newly issued bonds decreases relative to older, outstanding bonds, what happens?

A) The market price of the older bond falls in the secondary market.

B) The market price of the older bond rises in the secondary market.

C) Older bonds can still be sold at their face value.

D) Older bonds will sell for more than their face value.

24) You have a bond that pays $60 per year in coupon payments.  Which of the following would result in an increase in the price of your bond?

A) Coupon payments on newly-issued bonds rise to $80 per year.

B) The likelihood that the firm issuing your bond will default on debt increases.

C) The price of a share of stock in the company falls.

D) Coupon payments on newly-issued bonds fall to $50 per year.

25) Dividing the dividend payment by the stock’s closing market price determines the

A) coupon payment.

B) dividend yield.

C) price-earnings ratio.

D) selling price of the stock.

26) What do the highest stock price and the lowest stock price over the previous year indicate?

A) Add them together and divide by two to get the stock’s current market price.

B) What the stock’s price-earnings ratio is

C) How volatile the stock’s market price has been

D) They generate the dividend yield.

27) Dividing the current market price of a stock by the firm’s earnings per share gives the firm’s

A) price-earnings ratio.

B) year-to-date percentage change.

C) dividend yield.

D) stock coupon maturity yield.

28) In October 2013, General Motors (GM) posted a price-earnings ratio of 10.13.  If the price of the stock at that time was $36 per share, which of the following must have been true?

A) GM’s revenues that month were $364.68 million.

B) GM’s earnings per share was $3.55.

C) GM’s coupon payment was $36 per year.

D) GM’s dividend yield for the year was 36.5%.

29) Total dividend payments plus retained earnings divided by outstanding stock shares equals

A) the price-earnings ratio.

B) earnings per share.

C) the dividend yield.

D) the year-to-date percentage change.

30) In 2013, the dividend yield on Abercrombie & Fitch (ANF) stock rose from a low of 1.33% in May to 2.24% in October.  Which of the following would have generated that result?

A) The closing price of ANF stock rose.

B) ANF announced an increase in the dividend it would pay per share.

C) The price-earnings ratio fell.

D) ANF issued bonds with a coupon rate equal to 2.24%.