313 Test, Multiple choice questions

Latency refers to

Amount of Time to accept, process, and deliver a trading order

Management fees for open-end and closed-end funds typically range between _____ and _____.

-2 - 1.5

Specialist maintain a narrow bid because

1. If spread is too large, people will not participate in trading 2. Exchange requires specialist to maintain price continuity

As of 2014, approximately _____ of mutual fund assets were invested in equity funds.

52

Explicit cost of an IPO tend to be around ___________ of the funds raised

7%

Dark Pools allow

Anonymity in Trading Involves large blocks of stock Trades made through them may not be reported

_____________________ Are mutual funds that vary the proportions of funds invested in particular market sectors

Asset Allocation Funds

Mutual Funds that hold both equities and fixed-income securities in relatively stable proportions are called _____________________

Balance Funds

The _______ price is the price at which the dealer is willing to purchase

Bid

The Difference between the price at which a dealer is willing to buy and the price at which the dealer is willing to sell is known as the

Bid-Ask Price

The process of polling potential investors regarding their interest in a forthcoming initial public offering (IPO) is called ________.

Book Building

Maintenance requirement for margin Accounts are set by ____________

Brokerage Firm

Restrictions on trading involving insider info applies to:

Corporate officers, major stockholders, relatives... basically everyone

All major stock markets today are effectively _______________.

Electronic Trading system

Revenue sharing with respect to mutual funds refer to

Fund companies paying brokers if the broker recommends the fund to investor

Which fund invest specifically in stocks of fast growing companies?

Growth Equity Funds

Advantages of investment companies to investors include all but which one of the following?

Guarantee rate of Return

A ________ is a private investment pool open only to wealthy or institutional investors that is exempt from SEC regulations and can therefore pursue more speculative policies than mutual funds

Hedge Fund

The vanguard 500 index fund tracks the performance os S&P to do so the fund buyers shares in each S&P company______

In proportion to the Market value weight of the firm equity in S&P

Most IPOs go to

Institutional Investors

IPOs are usually _________ relative to the levels at which their price stability after being to get traded

Underpriced

Underwrites is on of the securities provided by the ________________

Investment Bankers

A ___________ fund is defined as one in which the fund charges a sales commission to either buy into or exit from the Fund

Load

The ______ is the most important dealer market in the USA, and the _______ is the most important auction market

NASDAQ,NYSE

The prime measurement unit used for assessing the value of one's stake in investment is ___________________

Net Asset Value (NAV)

In 2008 the the NASDAQ stock market merged with

OMX which operated T Nordic and Balsic Stock exchanges

___________ Funds stand ready to redeem or issue shares at their NAV

Open-End

Private placement can be advantageous, compared to public issue because:

Private placements are cheaper than public issue

An official description of a particular mutual funds planned investment policy can be found in the funds ___________

Prospectus

The _____- requires full disclosure of relevant informations relating to the issue of the new security

SEC Act of 1933

You hold 5,000 shares of the 1 million outstanding shares of Wealthy Wranglers common stock. You've just learned that the company plans to issue more shares, so that 2 million shares will be outstanding. This is called _____.

Season Equity Offering

Most Risky to less Risky

Sector fund, Equity growth fund, balance fund, money market fund

Specialized-sector funds concentrate their investments in _________________.

Securities issued by firms in a particular field

What is False regarding NYSE specialist?

Specialist cannot trade on their own account

An investor places a ________ order, stock will be sold if price falls to stipulated levels. If investor places a _______ until price rises above stipulated level

Stop less. Stop-BUy

An order to buy securities at a current price is a

market order

The Cost of buying and selling a stock is known includes

brokers commission, dealers bid-Ask spread, price concession that investors have to make

When matching order from a public, a specialist is required to use the

highest outstanding bid price and lowest asking Bid Price

The term inside quotes refers to _____.

the difference between the highest bid price and the lowest ask price in the limit order book.