FINA 3315 INVESTMENTS MIDTERM#1 CH 1,2,4,5,6 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026

FINA 3315 INVESTMENTS MIDTERM#1 CH 1,2,4,5,6 EXAM QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2025/2026 Which of the following securities represents direct ownership of a business? Question content area bottom Part 1 A. mutual fund shares B. preferred stock C. bonds D. common stock - Answers D Which of the following is considered an institutional investor? Question content area bottom Part 1 A. Retail brokers B. Certified financial planners C. Insurance companies D. Nonprofit organizations - Answers C Which of the following is most popular during sustained periods of high interest rates? Question content area bottom Part 1 A. corporate bonds B. mutual funds C. real estate D. stock - Answers A Investments in common stock I. may have unlimited potential returns. II. may provide some income from dividends. III. provide a high rate of return with low risk. IV. may expose the owner to significant risk of falling prices. Question content area bottom Part 1 A. I and IV only B. II and IV only C. I, II and IV only D. I, II, III and IV - Answers C Which one of the following statements concerning initial public offerings (IPO's) is correct? Question content area bottom Part 1 A. Most companies offer their stock directly to the public without the help of investment bankers. B. Initial public offerings are basically an unregulated process. C. The price of initial public offerings (IPO's) typically falls significantly on the first day of trading. D. Most initial public offerings (IPO's) are underwritten by an investment banking firm. - Answers D Which one of the following statements about the NASDAQ trading system is correct? Question content area bottom Part 1 A. The NASDAQ trading system is limited to stocks of relatively small and new companies.. B. Dealers electronically post their bid/ask prices and orders are filled at the best available price. C. Listed stocks are traded by specialists who are charged with maintaining a fair and orderly market. D. Stocks are traded on the floor of an organized exchange. - Answers B The NASDAQ Exchange is located in: Question content area bottom Part 1 A. London. B. New York C. Chicago D. numerous locations linked electronically. - Answers D