Investment Scenario Trivia Quiz!

15 Questions | Total Attempts: 83

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Investment Scenario Trivia Quiz!

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Questions and Answers
  • 1. 
    It refers to the act of putting money, effort, time, etc. into something to make a profit or get an advantage, or the money, effort, time, etc.
  • 2. 
    Bonds and commercial papers are examples of ________ securities.
  • 3. 
    Short-term securities are highly ___________since they can be easily converted to cash with little or no loss in value, thus, enabling the investor to quickly obtain funds to meet unexpected obligations or shift to more attractive investment opportunities.
  • 4. 
    Gold, precious metals, artwork, antiques, coins and stamps are examples of _______________
  • 5. 
    _________________ is that part of a financial system concerned with raising capital by dealing in shares, bonds, and other long-term investments.
  • 6. 
    In the _______________ new shares are issued and sold to the investing public for the first time.
    • A. 

      Primary market

    • B. 

      Secondary market

    • C. 

      Capital market

    • D. 

      Debt market

  • 7. 
    Which of the following acts as middleman in the transfer of funds between the company in need of capital and the public, and facilitates the issuance of shares?
    • A. 

      Underwriter

    • B. 

      Bond issuer

    • C. 

      Stock issuer

    • D. 

      Securities investor

  • 8. 
    This is where securities can be bought and sold after they have been issued to the public in the primary market.
    • A. 

      Secondary market

    • B. 

      Primary market

    • C. 

      Initial Public Offering

    • D. 

      Direct Placement

  • 9. 
    The _______________consists of the exchanges or OTC markets in which shares of publicly held companies are issued and traded.
    • A. 

      Stock market

    • B. 

      Stock exchange

    • C. 

      Debt market

    • D. 

      Initial public offering

  • 10. 
    An _______________ is a decentralized market where the participants trade with one another directly, without the oversight of an exchange. It consists of securities that are traded outside of public exchanges. 
    • A. 

      Over-the-counter (OTC) market

    • B. 

      Stock exchange

    • C. 

      Derivatives market

    • D. 

      Primary market

  • 11. 
    A clearing house is a financial institution formed to facilitate the exchange (i.e., clearance) of payments, securities, or derivatives transactions.
    • A. 

      True

    • B. 

      False

  • 12. 
    A corporation that offers and lists its shares in the stock exchange is called an issuer.  
    • A. 

      True

    • B. 

      False

  • 13. 
    An agent trades on his own behalf, his work is like of principal.
    • A. 

      True

    • B. 

      False

  • 14. 
    Dividend is the profit from the sale of property or of an investment.
    • A. 

      True

    • B. 

      False

  • 15. 
    Convertible securities may be convertible bonds or preferred stocks that pay regular interest and can be converted into shares of common stock (sometimes conditioned on the stock price appreciating to a predetermined level).
    • A. 

      True

    • B. 

      False