The downside of using equity (going public) is

company gives up control, publicizes financials, & answers to a board

market of a group of securities in which prices are rising

A share of Stock is a:

type of security that signifies partial ownership in a company

What is the disadvantage of using debt financing to fund capital expenditures?

It requires the business to pay the money back with interest

What causes the prices of stocks to increase and decrease in value

New information, investor speculation, and supply and demand

studbud

Financial Markets Quiz

15 termsStudBud Administration346 plays

Imported from external platform

Flashcards15 cardsFPractice quizPHost liveL

Questions 15

Answers

1
All publicly traded organizations are required to pay dividends
False
True
2
A Bear Market is:
market with limited competition
A challenging camping environment
market condition in which security prices are falling
market of a group of securities in which prices are rising
3
What is "principal"
Money invested or borrowed before any interest is paid or earned
Money earned or paid in interest on a loan or investment
The amount of the loan or investment that is risked
Interest earned or paid before purchase was made
4
This is a risk management technique that mixes a wide variety of investments
Diversification
Risk Mitigation
Mutual Fund
NASDAQ
5
A fund that uses money from a pool of investors
Mutual Fund
Mid Cap Fund
Index Fund
Large Cap Fund
6
The NASDAQ is:
First electronic stock market including Google and Microsoft
A Fast Food Fund
Nonsense Association of District Annual Quotas
A Bear Market Fund
7
The downside of using equity (going public) is
company gives up control, publicizes financials, & answers to a board
is not required to publicize financial
has to pay dividends, pays interest to the CEO, and publisixes financials
has to pay the money back with interest, and has to answer to a board
8
A Bull Market is:
market condition in which security prices are falling
market made up of monopolies
market with limited competition
market of a group of securities in which prices are rising
9
A share of Stock is a:
revenue sharing option
statement of assests
type of security that signifies partial ownership in a company
liquid used to make soup
10
Principal guaranteed investments are considered to be high risk, therefore they earn less interest.
False
True
11
This is the world's largest stock exchange
New York Stock Exchange
S&P 500
US Corporate Exchange
NASDAQ
12
What is the disadvantage of using debt financing to fund capital expenditures?
It requires the business to pay the money back with interest
Company gives up ownership, publicize financials, & answers to a board
It could be viewed as a desperate measure by investors
If chosen it limits the company's ability to have an IPO in the future
13
What causes the prices of stocks to increase and decrease in value
New information, investor speculation, and supply and demand
New information, consumer speculation, and political policy changes
Investor speculation, political policy changes, and new information
Debt to equity ratios, new information, and CEO certifications
14
What are 2 ways businesses can raise capital dollars
Debt and equity financing
Increasing revenue and borrowing money
Changing the internal financial structure and business model
Increasing assets and selling off liabilities
15
This is when a company pays a portion of profits to stock holders
Cyrptocurrency
Dividends
Stock Options
Retained Earnings

Financial Markets Quiz Flashcards | StudBud