Stock Markets
Consider buying the call option, if the price of stock rises then the buyer of call option has
low potential of losses
high potential of losses
high potential of profit
low potential of profit
high potential of profit
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When the earnings are reinvested instead of payments of dividends, then the capital gainsA. must increases
B. must decreases
C. must be zero
D. must be one
The method of auction of future contract in which the traders sell their future 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
The right of stockholders of firm that new shares must be offered to existing stockholders first, rather than new stock holders is classified as
A. non-offered rights
B. preemptive rights
C. existing rights
D. securitize rights
The difference between net proceeds and gross proceeds is called
A. non-participating spread
B. participating spread
C. under writer spread
D. over writer spread
The number of shares outstanding are multiplied to price of stock to calculate
A. secondary market values
B. current market values
C. past market values
D. primary market values
The fixed price at which the stock is purchased from issuer by the investment banks is called
A. non-cumulative proceeds
B. net proceeds
C. Gross proceeds
D. cumulative proceeds
The type of preferred stock in which the dividend does not increase or decrease with the increase or decrease in profit of firm is classified as
A. non-cumulative preferred stock
B. cumulative preferred stock
C. non-participating preferred stock
D. participating preferred stock
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