Prospectus which describe new securities are distributed before their registration is classified as
A. red herring prospectus
B. white herring prospectus
C. pre-emptive prospectus
D. securitized prospectus
Select an option to see the answer and solution.
Intrinsic value of option is subtracted from exercise price of an option to calculate
A. forward price of asset
B. price of underlying asset
C. future price of asset
D. spot price of asset
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Type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as
A. non participating preferred stock
B. participating preferred stock
C. non cumulative preferred stock
D. cumulative preferred stock
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Under writer spread is subtracted from gross proceeds to calculate
A. Gross proceeds
B. cumulative proceeds
C. non cumulative proceeds
D. net proceeds
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Form of market efficiency which states that prices of stock reflects public and private information of firm is classified as
A. weak form of market efficiency
B. strong form of market efficiency
C. semi-strong form market efficiency
D. expensive form market efficiency
Select an option to see the answer and solution.
Difference between intrinsic value of option and price of option is classified as
A. spot value of option
B. time value of US treasury
C. time value of option
D. time value of bond
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Security which has characteristics of common stock and bonds both at same time is classified as
A. preferred stock
B. voted stock
C. cumulative stock
D. fundamental stock
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Type of option that can be exercised before date of expiration as well as on expiry date is classified as
A. Australian option
B. American option
C. European option
D. Canadian option
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Intrinsic value of an option is 490 an d p r i ceo f u n d er l y in g a sse t i s 290 then exercise price of an option is
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Underwriter spread of stock is added to net proceeds to calculate value of
A. over writer spread
B. Gross proceeds
C. participation proceeds
D. non participation proceeds
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Method of auction of futures contract in which traders sell their futures contracts at a specified price by crying out in louder voices is classified as
A. traders gathered auction
B. close outcry auction
C. specified auction
D. open outcry auction
Select an option to see the answer and solution.
Gross proceeds of stock is 24000 an d n e tp r ocee d s a r e 35000 then under writers spread is
A. $15,000
B. $13,500
C. $16,750
D. $11,000
Select an option to see the answer and solution.
Consider buying call option, if price of stock falls then buyer of call option has
A. high potential of profit
B. low potential of profit
C. low potential of losses
D. high potential of losses
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Position which occurs because of selling floor and buying cap is classified as
A. floating collar
B. fixed collar
C. currency collar
D. collar
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Stock holder who does not have any voting rights in corporation is considered as
A. sub class voter
B. preferred stockholder
C. common stock holder
D. cumulative voter
Select an option to see the answer and solution.
Under writer spread is 47500 an d g r oss p r ocee d s a r e 34000 then net proceeds are
A. $13,500
B. $81,500
C. $47,500.00
D. $34,000
Select an option to see the answer and solution.
Type of voting in which all directors in voting lists are voted at same time is classified as
A. cumulative voting
B. non-cumulative voting
C. dual class voting
D. limited voting
Select an option to see the answer and solution.
Type of traders who take position in market of futures which is based on expectations of prices of underlying assets are classified as
A. professional traders
B. non-investment traders
C. position traders
D. future market traders
Select an option to see the answer and solution.
Type of liability in which stockholders losses are counted for only invested amount in firm is classified as
A. counted liability
B. invested liability
C. unlimited liability
D. limited liability
Select an option to see the answer and solution.
Return to stockholders is 15% and periodic dividend payments are 11.5% then gains on capital are
A. 2.65%
B. 3.50%
C. 1.30%
D. 4.30%
Select an option to see the answer and solution.