Unit 12 series 65

During the analysis of XYZ stock, a technical analyst concludes that XYZ's support level has been broken. Being a technician, the most appropriate decision should be to

rate the stock as a sell.

ADRs are used to facilitate

the domestic trading of foreign securities

One of the features of convertible preferred stock is that

the owner has the opportunity to participate in the growth of the company

Corporations have found that one way to increase employee motivation is to grant options to purchase stock in the company. Incentive (qualified) options differ from nonqualified options in all of the following respects except

the recipient of the grant of the ISO has no income tax consequences at the time of the grant.

A common stockholder's rights include all of the following EXCEPT

the right to determine the par value of the stock

Which of the following has the least exposure to inflation risk?

Common stock

A technical analyst is least likely to consider which of the following when selecting securities?

Corporate earnings

Which of the following statements is TRUE?

Dividends have a significant influence on the value of the corporation's stock.

Which of the following factors would be considered by an investor who uses fundamental analysis to value a company's stock? I. The company's financial condition, as revealed by its income statement and balance sheet II. General economic conditions, such as employment levels and changes in interest rates III. Charts showing past movements in stock prices and trading volumes

I and II

Which of the following have equity positions in a corporation? I. Common stockholders II. Preferred stockholders III. Convertible bondholders IV. Mortgage bondholders

I and II

Which of the following statements regarding ADRs are TRUE? I. They are issued by large domestic commercial banks. II. They are issued by foreign banks. III. They facilitate U.S. trading in foreign securities. IV. They facilitate a foreign investor who wants to trade U.S. securities.

I and III

Julie owns 100 shares of CCC at $25. CCC declares a 25% stock dividend. After the ex-date, what will she own? I. 125 shares II. 100 shares III. Cost basis of $25 IV. Cost basis of $20

I and IV

Kellie is a senior equity analyst for a large brokerage firm. She primarily uses fundamental analysis techniques to assist her in picking stocks for her firm's clients. Today, she is reviewing the XYZ Corporation. The company is a manufacturer of computer keyboards and is currently going through an expansion phase. Which of the following techniques would Kellie be least likely to use to determine whether to buy, sell, or hold this company's stock?

She may review the company's stock 200-day moving average.

Which of the following might be used by an analyst to approximate a reasonable price for a common stock?

The dividend discount model

A fundamental analyst would be interested in all of the following EXCEPT

daily trading volumes on the NYSE

A corporation would like to offer their employees an opportunity to participate in the future growth of the company. Among the methods you might suggest are

employee stock options

An employee wishing to obtain long-term capital gain treatment would prefer the employer to offer

incentive stock options

Which of the following statements about technical analysis are TRUE? I. Technical analysis tries to identify trends and predict market changes. II. Technical analysis is often accomplished by reviewing data in the form of charts. III. Technical analysis looks primarily at past performance to predict future trends.

I, II, III

Which of the following is used in technical analysis in an attempt to modify fluctuations of stock prices over the long term into a smoothed trend?

Moving averages

Which of the following are regulated under the Securities Exchange Act of 1934? I. New issues II. Broker-dealers III. Transfer agents

II and III