FRL 300 chapter 8

what is the model called that determines the present value of a stock based on its next annual dividend, the dividend growth rate, and the applicable discount rate?

dividend growth

if you expect the market rate of return to increase across the board, then you should expect

a decrease in all stock values

which one of the following is an underlying assumption of the dividend growth model

a stock's value is equal to the discounted present value o the future cash flows which it generates

an ecn

a website that allows individual investors to trade directly with one another

the dividend growth model

all is true

an agent who arranges a transactions between a buyer and a seller is called a

broker

which one of the following is the rate at which a stock's price is expected to appreciate?

capital gains yield

the person on the floor of the nyse who executes buy and sell orders are

commission brokers

which one of the following types of stock is defined by the fact that it receives no preferential treatment in respect to either dividend or bankruptcy policies?

common

single election, one vote per seat, cast all votes for a single candidate

cumulative voting

an agent who maintains an inventory form which he or she buys and sells securities is called

dealer

an increase in which of the following will increase the current value of a stock

dividend amount, number of future dividends, dividend growth rate

which one of he following is computed by dividing next years annual dividend by the current stock price

dividend yield

a floor broker on the nyse does what?

executes orders on behalf of a commission broker

an individual on the floor of the nyse who owns a trading license and buys and sells for his or her personal count is a

floor trader

which one of the statements is correct regarding the 2 stage dividend growth model

g can be greater than r

the secondary market is

market where outstanding shares of stock are resold

the owner of a trading license for the nyse is a

member

the stream of customer orders into the nyse trading floor is called the

order flow

a securities market primarily comprised of dealers who buy and sell for their own inventories is referred to as a

over the counter market

the counter area on the floor where a specialist operates is the

post

which one of the following is a type of equity security that has a fixed dividend and a priority status over other equity securities

preferred stock

new equity shares sold to general public on nasdaq

primary markets

a market maker who acts as a dealer in one or more securities on the floor of the nyse is a

specialist

type of voting that requires owning more than half of the outstanding shares to be elected

straight

which one of the following is the electronic system used by the nyse for directly transmitting orders

superDOT