Chapter 8 fin
member
whose role is to act as a dealer in a small number of securities, often acting as a market maker.
Preferred
A stock with dividend priority over common stock is called a Blank______ stock.
dealer
A____________maintains an inventory of stocks and buys and sells those stocks.
designated
An NYSE member who acts as a dealer in particular stocks is called a________market maker
Floor
An NYSE member who executes customer buy and sell orders is called a ________ broker.
Staggered board
Mota Motors has eight directors on its board, two of whom go up for election each year. This is an example of a:
-Computer network of securities dealers -Multiple market maker system
NASDAQ has which of these features? -Computer network of securities dealers -Multiple market maker system -Physical trading floor -Single DMM system
floor trader
NYSE member who trades on his or her own account. The specialist is another type of NYSE member, whose role is to act as a dealer in a small number of securities, often acting as a market maker.
Cumulative voting
Suppose Bob owns 20 shares and Vikki owns 30 shares in Good Company, and there are five members of the board of directors. Under which voting arrangement can Bob assure himself of a board member that represents his interests?
specialist
The NYSE member who acts as a dealer in a small number of securities is called
supernormal; some finite length of time
The main reason for considering nonconstant growth in dividends is to allow for _____ growth rates over _____.
Secondary
The trading of existing shares occurs in the ______ market.
start growing at a constant rate sometime in the future
When assuming nonconstant growth in dividends, to avoid the problem of having to forecast and discount an infinite number of dividends, we must require that the dividends
Newly-issued stocks are initially sold
Which of the following occurs in the primary market?
No minority shareholder would have enough votes to win any seat on the board
WinWin Corporation has five board members, and each shareholder gets one vote per share. The company uses a straight board voting procedure. How does this arrangement affect minority shareholders?
Straight
With voting, the directors are elected one at a time and the only way to guarantee a seat is to own 50 percent plus one share
Dividend
a payment by a corporation to shareholders, made in either cash or stock.
Broker
A person who brings buyers and sellers together is called