QUIZ 2 - FINALS

A security that represents the ownership of a fraction of a corporation

• Stocks

• Bonds

• Shares

• Mutual funds

This is the type of stock that has all of the traditional power of being a business owner.

• Common stock

• Preferred stock

• Ordinary shares

• Share capital

Also represents ownership of the business but typically

does not come with any voting rights

• Common stock

• Preferred stock

• Ordinary shares

• Share capital

Requirement to effect transfer of stocks

• Contract

• Subscription

• Endorsement

Stock issued for no value at all or for a value less than its equivalent either in cash, property, shares, stock dividends, or services

• Common stocks

• Preferred stocks

• Share capital

• Watered stocks

The balance of subscription is payable on the date specified in the contract of subscription

• True

• False

The process of determining the current (or projected) worth of a stock at a given time

• Bond valuation

• Stock valuation

Calculates the "true" value of a firm based on the dividends the company pays its shareholders.

• Dividend Discount Model

• Discounted Cash Flow Model

• Comparable Model

• The Bottom Line

Bonds that mature in less than 1 year (short term).

• Treasury Bonds

• Treasury Securities

• Government Bonds

• Treasury Bills

Bonds that have tenors of more than 1 year

• Treasury Bills

• Treasury Bonds

• Treasury Securities

• Government Bonds