kairi asked in Yahoo ProductsYahoo Answers · 9 years ago

Business questions help? :)?

Hello everyone! These are questions I'm having a bit of a problem with and just want to see if I'm either right or wrong about them. If I am wrong, could you explain to me why the answer is different? I want to make sure I know these just in case they show up on the final exam. Thanks a bunch everyone. :)

1. A corporate bond provides the owner with the right to sell the bond to other investors at any time during the life of the bond.

T/F?

-I chose true.

2. Greg purchased 2000 shares of common stock of the Rite Track Corporation last year. He learned several months later that the stock does not pay a dividend. Greg should proceed to:

a.Hire an attorney and file a lawsuit.

b.Immediately proceed to sell the shares.

c.Do the proper research before he invests.

d.Hire an attorney and go after the registered representative that brokered the trade.

-I chose c.

3. In a secondary market sale of stock, the proceeds go to the investor selling the stock, not to the corporation.

T/F?

-I chose True.

4. Bond prices in the newspaper or online are quoted as a percentage of their face value of $1000. If the bond price is 103.25, this bond's value =

a. $1032.50

b. $103.25

c. $10,325.00

d. $10.33

-For this one I wasn't too sure...I guessed a.

5.Laura read about Living Longer Biotechnology, Inc. and wants to buy 100 common shares at $45 per share. Unfortunately, she only has $3000 available to invest. One risky strategy Laura could consider is:

a. Leveraging her future professional earnings.

b. arranging for security funding.

c. buying from the dealer's account.

d. buying on margin.

-I chose b.

6. A stock exchange provides a marketplace where the public can directly buy and sell securities without the help of intermediaries.

T/F?

-I chose False.

7.Sam Schiester, a stockbroker at Schemes Financial Services Company called you the other day asking if you would like to purchase an IPO. "The hot new company, Hottie Potatee is going public, and I thought you might want to get in on it," he exclaimed. If you agree to buy shares of this company, this trade will occur on the secondary market.

T/F?

-I chose True.

8. Stocks that are not listed as trading on one of the national or international stock exchanges can be traded on the OTC, Over-The-Counter exchange.

T/F?

-I chose True.

9. It is easier for a small business to raise funds through a stock issuance than for a large, well-known company.

T/F?

-I chose True.

10. Interest rate on bonds is usually quoted as an annual rate, and paid:

a. semi-annually

b. quarterly

c. annually

d. monthly

- I chose b.

I'm sorry if this seems like a lot. It's a complete packet of 200 questions and these ones just made me second guess. Otherwise I double checked in the book for the others. :)

Thank you again everyone!

1 Answer

Relevance
  • Anonymous
    9 years ago
    Favorite Answer

    Most of your answers are right. Here are the few that I spotted as off:

    5 should be D

    7 should be False. If you purchase a stock through it's IPO, it would not be considered as being sold through the secondary market until you started to trade it.

    9 should be False. It's hard for small businesses to go public.

    10 should be A. Most bonds pay semi-annually.

Still have questions? Get your answers by asking now.