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Question
A person who is registered to trade on an exchange, who owns a seat but is not an employee of any member firm is a:A.commission broker.
B.floor broker.
C.registered trader.
D.dealer.
E.B and C
Answer
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Related questions
Q:
The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are:
A.large company stocks and U.S. treasury bills.
B.large company stocks and long-term government bonds.
C.small company stocks and U.S. treasury bills.
D.small company stocks and preferred stock.
E.U.S. treasury bills and small company stocks.
Q:
The difference between the cash market and the futures market is:
A.that commodity prices cannot be negotiated in the futures market, while they can be in the cash market.
B.that larger margins are used in the cash market.
C.that in the cash market, there must be a transfer of the physical possession of the goods.
D.that the commodities are usually less expensive in the futures market.
Q:
Corn futures are traded on the:
A.New York Futures Exchange.
B.Chicago Board of Trade.
C.International Money Market of the CME.
D.All of the above
Q:
Assume you have purchased a contract for 25,000 British pounds for $35,000. Your margin requirement is $2,000. If the value of a pound increases .01, what is your percentage profit?
A.10.0%
B.12.5%
C.15.0%
D.8.0%
E.None of the above
Q:
In order to be listed on an exchange, a firm must meet minimum standards pertaining to the following criteria:
A.the number of common shares publicly held.
B.the net income of the firm.
C.the number of stockholders owning a minimum of 100 shares.
D.All of the above are requirements
Q:
The Securities Investor Protection Corporation (SIPC) was established to:
A.oversee the liquidation of brokerage firms, and insure an investor's accounts to a maximum value of $500,000 in case of bankruptcy by the broker.
B.protect investors from corporate insider trading, and insure their accounts for $500,000 in case corporate fraud caused a company to go bankrupt.
C.cover the total market loss on an investor's brokerage account in case of the bankruptcy of the broker.
D.create an insurance pool for brokerage firms, so that if one firm went bankrupt, all investor losses would be covered out of the insurance pool.
Q:
Program trading
A.means that when a given market indicator reaches a certain point, a large sale or purchase of securities may take place.
B.has been argued to affect the market by accelerating price movements.
C.relies on mathematical algorithms.
D.All of the above
Q:
Which of the following is true of over-the-counter markets?
A.Trading takes place by telephone or electronic network
B.It is regulated by the Securities and Exchange Commission and the National Association of Securities Dealers
C.Government securities of the U.S. Treasury provide the largest dollar volume.
D.All of the above are true
Q:
An employee of an investment house who executes orders on the floor of the exchange for customers of the firm is called a:
A.floor broker.
B.registered trader.
C.commission broker.
D.specialist.
E.dealer.
Q:
From the investment banker's point of view, the major reason syndicates are formed in the distribution of large issues is for the purpose of:
A.improving the liquidity of the issue.
B.improving geographic distribution.
C.reducing the underwriter's risk.
D.improving brand recognition.
Q:
A means of exchanging assets, which may or may not include a specified location, and in which the seller may or may not own the assets being sold, is called:
A.ETF.
B.program trading.
C.a market.
D.None of the above
Q:
The cost of compliance with the Sarbanes-Oxley Act has had little effect on the willingness of foreign companies to list their shares on U.S. stock exchanges.
Q:
The Small Firm Effect asserts that there is a positive correlation between market capitalization and risk-adjusted returns.
Q:
There is rarely a significant change in stock price when an OTC stock becomes listed on a national exchange.
Q:
In an efficient market environment, it is reasonable to assume that the higher the premium on a target company's stock, the less the risk of cancellation.
Q:
Given the following financial data: net income/sales = 6%, sales/total assets = 2.5X, and debt/total assets = 25%, compute the return on assets and return on equity.ROA = 15.0%ROE = 20.0%
Q:
Price Printing Co. had sales of $10 million, operating income of $3 million, after-tax income of $1 million, assets of $8 million, stockholders' equity of $5 million, and a total debt of $3 million. What is Price Printing Company's profit margin?
A.10.0%
B.20.0%
C.30.0%
D.33.0%
E.90.0%
Q:
You would find the payment of dividends in the statement of cash flow under:
A.cash flows from operating activities.
B.cash flows from investing activities.
C.cash flows from financing activities.
D.cash flows from purchasing activities.
E.cash flows from selling activities.
Q:
The value of a bond at any given time is the sum of:
A.the future interest payments and the par value.
B.the present value of future interest payments and the present value of the par value.
C.the future value of the interest payments and the future value of the par value.
D.the present value of future interest payments and the market value.
E.the present value of future interest payments and the future value of the par value.
Q:
Lower-quality bonds tend to be in high demand during a recession.
Q:
Deep discount bonds are not prone to calls because they sell at low prices.
Q:
Inflationary expectations have no effect on bond prices.
Q:
The approximate yield to maturity method tends to understate the true yield for bonds trading at a discount.
Q:
Yield to maturity considers annual interest, difference between current price and maturity value, and years to maturity.
Q:
What is the approximate yield to maturity of an 8% coupon bond, with a par value of $1,000?
Q:
What would be the current yield of a 6% coupon bond priced at $950?
Q:
A 15-year, 7% coupon rate bond is selling for $771.82. What is the current yield of the bond?A.22.8%B.7.0%C.9.1%D.10.0%E.30.7%
Q:
The impact of interest rate changes on bond prices can be magnified by:
A.investing in speculative high-risk high-yield bonds.
B.investing in higher-quality corporate bonds.
C.investing in short-term bonds.
D.More than one of the above
Q:
The market segmentation theory focuses on:
A.the impact of institutional investors on the yield curve.
B.the maturity preferences of banks and those of life insurance companies.
C.phases of the business cycle.
D.All of the above
Q:
Assume a $1,000 Treasury bill is quoted to pay 10% and matures in 3 months.a) How much interest would an investor receive?b) What will be the price of the Treasury bill?c) What will be the true rate of return?