Business Finance Chapter 7 Learnsmart
Which of the following are reasons that make valuing a share of stock more difficult than valuing a bond?
Stock has no set maturity, the required rate of return is unobservable, dividends are unknown and uncertain
Examples of secondary markets in the US include which of the following?
The Chicago Stock Exchange, the NYSE, NASDAQ
Which of the following ratios might be used to estimate the value of a stock?
The Price/Sales ratio + The Price/Earnings ratio
The NYSE differs from the NASDAQ primarily because the NYSE has
a face-to-face auction market, a physical location
If unpaid preferred dividends must be "caught up" before any common dividends can be paid, they are called _____ dividends
cumulative
Someone who maintains an inventory of stocks and buys and sells those stocks is known as a
dealer
The fundamental business of the NYSE is to attract
order flow
NYSE Designated Market Members were formerly called
specialists
Which of the following are rights of common stock holders?
The right to vote on matters of importance, the right to share proportionally in any residual value in the event of liquidation, the right to share proportionally in any common dividends paid.
A person who brings buyers and sellers together is called a
broker