Round lots are: securities transactions that are in multiples of 100 shares
A firm raises capital to finance new equipment by selling bonds in the: primary
market
A bid price is: the price a dealer is willing to pay for a security
Which of the following is not considered a capital market security: foreign
currencies
Federal funds are: loaned by one financial institution to another
The main goal of the financial manager is to increase the firms overall profits: false
The largest provider of funds in the financial system is: individuals
A firms earnings are a true representation of cash flows available to the
stockholders: false
In a corporation, profits are generally measured in terms of earnings per share: true
Which of the following topics are included in a broad-based study of finance?
Answers A and B only
Which of the following is a true statement? The required return from securities
usually fluctuates with changes in risk
Total shareholder wealth can be calculated by: multiplying the number of shares
outstanding by the market price per share
$100 today is worth: more than $100 to be received in one year since you can invest
the money received today for this period, leaving you with more than $100 in the
future
Wise investors hold ______ in their portfolios to ______ their risk: a variety of
securities; reduce
Which of the following policies or institutional changes would make a securities
market more efficient? Improving the timeliness and accuracy of information flows
from firms and securities markets to investors
The money market involves the buying and selling of: short-term funds
Shares of ____ are units of ownership interest, or equity, in a corporation: common
stock
