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1. When a company issues a number of common shares, some of which areheld by institutional investors, what are the institutional investors' shares known as?
A) Outstanding shares.
B) issued shares
C) Public float shares.
D) Market capitalization shares.
2. Using the Moody's long-term rating scale, which rating is best suited for an obligation that is not yetin default, out is considered speculative andsubject to very high credit risk?
A) B
B) Caa
C) Ba
D) C
3. The consumerprice index was 125.9 in Decemberoflast year and 123.0 in December ofthe year before What was the inflation rate last year?
A) 1.02%
B) 2.36%
C) 2.30%
D) 0.98%
4. What is a company likely trying -c achieve when ituses a stock spit as part of itscorporate strategy?
A) Prevent delisting from a stock exchange
B) Fewer outstanding shares
C) increase the share price
D) Decrease the share price
5. The principleof retraction in retractable preferredshares is identical to what other security?
A) Retractable bonds and debentures
B) Retractable common shares
C) Redeemable preferred shares.
D) Callable preferred shares.
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: A |
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