Portfolio Management Quize1

1.High Color Detergent is issuing new shares of stock which will trade on NASDAQ. If Sue purchases 300 of these shares, the trade will occur in which one of the following markets? Primary 2. Wilson just placed an order with his broker to purchase 500 of the outstanding shares of GE. This purchase will occur in which one of the following markets? Secondary 3.Hi-Tek Shoes is a private firm that has decided to issue shares of stock to the general public. This stock issue will be referred to as a(n): initial public offering4. A firm that specializes in arranging financing for companies is called a(n): investment banking firm5.The process of purchasing newly issued shares from the issuer and reselling those shares to the general public is called: underwriting 6. A public offering of securities which are offered first to current shareholders is called a(n): rights offer.7. When a group of underwriters jointly work together to sell a new issue of securities, the underwriters form a(n): syndicate.8. Which one of the following is the federal agency which regulates the financial markets in the U.S.? Securities and Exchange Commission 9. The document that must be prepared in order to receive approval for a stock offering is called a: prospectus. 10.Which one of the following transactions occurs in the primary market? sale of newly issued shares by the issuer to a shareholder11. Debt securities promise __. I. a fixed stream of income II. a stream of income that is determined according to a specific formulaIII. a share in the profits of the issuing entity I or II only 12.A fixed-income security is defined as a long-term debt obligation that pays scheduled fixed payments 13. Which one of the following is classified as a fixed-income security? 2-year U.S. Treasury security 14. Riverside Metals recently issued some debt that had an original maturity of nine months. This debt is best classified as a(n): money market instrument. Treasury bills are financial instruments issued by