FIN 300 CH 8 Review

You cannot attend the shareholder's meeting for Alpha United so you authorize another shareholder to vote on your behalf. What is the granting of this authority called?

Voting by proxy

An agent who arranges a transaction between a buyer and a seller of equity securities is called a

broker

An agent who maintains an inventory from which he or she buys and sells securities is called a

dealer

A person on the floor of the NYSE who executes buy and sell orders on behalf of customers is called a(n)

floor broker

Which one of the following represents the capital gains yield as used in the dividend growth model?

g (same as growth rate)

The secondary market is best defined as the market

where outstanding shares of stock are resold

A floor broker on the NYSE does which one of the following?

Executes orders on behalf of customers

Which one of the following rights is never directly granted to all shareholders of a publicly held corporation?

Determining the amount of the dividend to be paid per share

A securities market primarily composed of dealers who buy and sell for their own inventories is referred to which type of market?

Over the counter

Which one of the following is an electronic system used by the NYSE for directly transmitting orders to designated market makers?

Pillar system

Ernst & Frank stock is listed on NASDAQ. The firm is planning to issue some new equity shares for sale to the general public. This sale will definitely occur in which one of the following markets?

Primary