FIN 3603 - Midterm
If the lowest limit sell order for IBM stock is $138 per share and the highest limit buy order is $136, the bid-ask spread on IBM stock is
$2
when an individual or organization acquires enough stock ownership and/or the ability to vote on behalf of other shareholders to replace the board of directors against their will it is known as
a hostile takeover
If the managers of a company are not the owners of the company, they are considered
agents
the most important function of a market maker on the NYSE is to
provide liquidity
one of the most important functions of the secondary market is to
provide liquidity to investors
firms that are the easiest to value are
publicly traded firms
dark pools are alternative trading systems that
reveal limited pricing and volume information
a fractional share of ownership in a corporation is known as
stock
a disadvantage of a partnership is
unlimited liability
which of the following is one of the primary questions addressed by financial managers
which projects should the firm invest resources in to increase shareholder wealth
One of the primary tasks of the financial manager is to manage short-term cash needs, which is known as
working capital management
researchers estimate that including dark pools there are as many as _____ stock trading venues where investors can buy and sell stock
50
technology that allows a transaction to be recorded in a publicly verifiable way without the need for a trusted third party to certify its authenticity is referred to as
blockchain technology
which of the following positions typically reports to the chief financial officer (CFO)
controller
a _____ is a form of business organization that is considered an artificial being and has limited liability
corporation
a corporation may elect to make a periodic cash distribution to its shareholders which is known as a
dividend payment
shareholders exercise control of a corporation by
electing a board of directors
when an investor submits a market order to sell stock the order will be executed
immediately
a limited liability company combines the
limited liability of a corporation with the ownership of a partnership
the ability to sell an investment quickly at a price close the the price at which you could contemporaneously buy it is known as
liquidity
which of the following is one of the primary functions of the financial manager
making financing decisions
a agency problem occurs when
managers put their own self-interests above shareholders
the primary goal of the financial manager is to
maximize shareholder wealth
the primary advantage of an S corporation is that profits are
not taxed at the corporate level
the market where financial securities are offered for sale to the public for the very first time is known as the
primary market