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.
