Topic Chapter#4,MCQZ

Course Name investment analysis

Assignment no. 4

Class & Semester M.Com 3rd

Submitted To Mr. Zahid Bashir

Submitted By

Roll Numbers Names Marks obtained

18214954-004 Zohaib- ul- Hassan

18214954-012 Nasar iqbal

18214954-009 Waqas ali

18214954-043 Adnan Hassan

1. The sale of a new issue of common stock of which there are already shares publicly held
is known as:

a. an IPO.

b. a secondary market issue.

c. an EPO.

d. a seasoned new issue.

2. In an underwriting arrangement, the risk is assumed by the:

a. issuer of the security

b. investment bankers

c. commercial bankers

d. institutional investors

3. The ___________ summarizes information about a new security issue.

a. syndicate offer

b. IPO

c. prospectus

d. shelf rule

4. Investment bankers are compensated by:

a. the underwriting spread

b. commissions paid by the buyers of the security

c. commission paid by the sellers of the security

d. guaranteed investment contracts

5. The open-outcry system for trading securities is utilized in the:

a. futures market

b. municipal bond market

c. Treasury bond market

d. options market

6. A major advantage of private placements over public offerings is:

a. greater marketability

b. lower interest cost

c. elimination of SEC registration

d. all of the above

7. The shelf rule

a. became effective in 1933

b. involves securities that are placed directly with financial institutions

c. permits qualified companies to file a short form registration

d. involves dealer procedures in the OTC market

8. A capitalization-weighted index obtains the current market value of

each stock by:

a. using the closing market price.

b. multiplying price times shares outstanding.

c. multiplying price times daily volume.

d. dividing earnings by shares outstanding.

9. NASDAQ stocks:

a. are generally foreign stocks.

b. trade via the Blue Sheets.

c. are not generally listed on organized exchanges.

d. represent less than 1,000 companies.

10. Which exchange member is assigned to a specific trading post?

a. Commission broker

b. Floor trader

c. Specialist

d. Dealer

11. Most of the members on the NYSE are associated with:

a. investment banks

b. commercial banks

c. the SEC

d. stockbrokerage firms

12. The NYSE is now a:

a. not-for-profit corporation.

b. a quasi-federal agency.

c. a publicly-owned company.

d. a multinational company.

13. A block trade is defined as a transaction involving at least:

a. 1,000 shares

b. 5,000 shares

c. 10,000 shares

d. 1 million share

14. A type of trading involving a basket of 15 stocks or more and often

used in conjunction with arbitrage strategies is called:

a. swapping

b. program trading

c. day trading

d. insider trading
15. A major difference between the Standard & Poor’s 500 Index (S&P)

and the Dow-Jones Industrial Average (DJIA) is that:

a. the S&P 500 is more dominated by OTC stocks than the DJIA.

b. the S&P 500 is more difficult to calculate than the DJIA.

c. the S&P 500 is a market value index and the DJIA is no.

d. the S&P 500 is more stable than the DJIA.

16. Which of the following statements regarding the Nasdaq Stock Market

is not true?

a. It was less affected by the 2000-2002 market decline than the NYSE.

b. NASDAQ dealers make a market by standing ready to buy and sell

securities.

c. Stocks listed on the NYSE may also trade on NASDAQ.

d. NASDAQ’s electronic trading system provides instantaneous

transactions.

17. A computerized trading network that matches buy and sell orders

electronically entered by customers is a:

a. National Markets System

b. Electronic Communications Networks

c. Internet Investment Service

d. Global Investment Network

18. The original electronic network, started in 1969, only for brokers,

dealers, exchange specialists and institutional investors is known as:

a. ReadiMarket
b. National Market System

c. OTC Worldwide

d. lnstinet

19. NASDAQ's new high-capacity trading platform is called the:

a. NMS Center.

b. NASDAQ Market Center.

c. NASDAQ ECN.

d. NASDAQ Instinet.

20. Some OTC stocks are traded through the:

a. Blue Sheets.

b. Red Sheets.

c. Pink Sheets

d. Green Sheets.

21. The fastest growing region in the world is:

a. Western Europe.

b. Latin America.

c. Eastern Europe.

d. the Far East.

22. Which of the following statements about the NYSE is true?

a. Over 10,000 companies are listed on the NYSE.

b. Specialists account for over 50 percent of the seats on the NYSE.

c. The NYSE is the oldest and most prominent secondary market in the

U.S.

d. Institutional investors do not trade on the NYSE

23. Europe's leading cross border exchange is the:

a. Deutsche Boerse.

b. Euromarket.

c. London Stock Exchange.

d. Euronext.

24. In-house trading refers to:

a. trades made only on the floor of the exchanges

b. direct trades made between OTC dealers

c. trades by fund managers without the use of brokers or exchanges

d. trades made between specialists on the NYSE

(c, moderate)

25. The price that some seller is trying to sell a stock for is known at the:

a. the bid quote.

b. the ask quote.

c. the closing price.

d. the specialist price.

26. On a volume basis, NMS issues account for _________ percent of all

Nasdaq volume.

a. 50

b. 60

c. 80

d. 90

27. The Dow-Jones Industrial Average is composed of:

a. OTC stocks

b. cyclical stock
c. blue-chip stocks

d. defensive stocks

28. A criticism of the Dow-Jones Industrial Average (DJIA) is:

a. it has too few stocks in the average

b. it is a value weighted method

c. it adjusts for even small stock dividends

d. it includes too many risky stocks