Question

In general, dividends are paid:

	a.	monthly.
	b.	semi-annually.
	c.	quarterly.
	d.	annually.

Rights that allow stockholders to maintain their proportionate ownership of a corporation are called:

	a.	proportionate rights.
	b.	cumulative rights.
	c.	preemptive rights.
	d.	Both a and b above
	e.	All of the above

The process of estimating the level of investor demand and deciding on the price of a share is known as:

	a.	registration.
	b.	red herring.
	c.	book building.
	d.	retailing.

Stockholders sell their investment:

	a.	when the preferred stock holders demand.
	b.	when the board of directors call for the stock.
	c.	at the prevailing market price.
	d.	for the price they paid plus interest.

Which of the following is TRUE?

	a.	A bond's price moves to par value as it approaches maturity.
	b.	Debentures are riskier investments than mortgage bonds.
	c.	Most bonds are purchased by individual investors rather than by institutions.
	d.	Both a & b
	e.	All of the above

The ____ a bond has to maturity, the ____ sensitive the bond's price is to changes in market interest rates.

	a.	shorter; less
	b.	Both b & c
	c.	longer; less
	d.	longer; more

Which statement is most consistent with the efficient markets hypothesis?

	a.	Chartists have an advantage because the market is predictable.
	b.	Investors cannot consistently earn a positive return on investment over time.
	c.	Information is reflected in security prices almost immediately.
	d.	Information in the market is always assessed correctly.

The differences between stocks and bonds include which of the following?

	a.	Future cash flows from stocks are not guaranteed.
	b.	Bonds have a fixed maturity and a guaranteed repayment of principal.
	c.	The timing and amount of cash flows from a bond are fixed.
	d.	All of the above
	e.	None of the above

Answer 1

In general, dividends are paid

Ans) Monthly

The amount of dividend final as well as interim shall be paid within the 30 days from the date of declaration.

2 ) Rights that allow stockholders to maintain their proportionate ownership of a corporation are.

Ans) preemptive rights

Common stock holder are usually given voting right, with the number of votes directly related to the number of shares owned.

3 ) The process of estimating the level of investor demand and deciding on the price of a share is known

Ans ) Book building

Book building is a systematic process of generating, capturing,and recordings investors demand for shares.and also determine the price.

4 )Stockholders sell their investment:

Ans ) At the prevailing market price

5 )

Which of the following is TRUE?

	a.	A bond's price moves to par value as it approaches maturity.
	.	Ans 6)The ____ a bond has to maturity, the ____ sensitive the bond's price is to changes in market interest rates. Ans ) longer and more maturity can affect interest rate risk longer the bond maturity greater the risk and more risk means more profit. 7 )The differences between stocks and bonds include which of the following? The timing and cash flow from the bond are fixed.