Quiz Ch 02 – Assessing Statements about Going Public and Stock Ownership
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Identify the INCORRECT statement regarding going public and stock ownership.
Identify the INCORRECT statement regarding going public and stock ownership.
Identify the accurate statement about financial markets and instruments.
Which term best characterizes the transaction where you sold 100 Microsoft shares to your brother at a family gathering, receiving a check, and giving stock certificates in return?
Which option serves as a capital market instrument?
Which option represents a primary market transaction?
Your recent sale of 200 Disney shares through a broker signifies which type of transaction?
True or false: To determine the annual rate of return for a stock, add its yearly dividend and price change, then divide by the initial price.
True or false: The NYSE is categorized as a ‘spot’ market due to its physical location, whereas the NASDAQ, lacking a central physical location, is not considered a spot market.
True or false: When a corporation’s shares are predominantly owned by a select group of individuals affiliated with the company’s management, it is referred to as closely held stock.
True or false: Hedge funds share certain similarities with mutual funds; however, the main distinctions lie in their relatively lower regulation, greater purchasing flexibility, and the limitation of their investors to affluent, experienced individuals and institutions.