options

What is a "roadshow" in the context of an IPO?

• A marketing event where the company showcases its products

• A tour of potential investors to promote the IPO

• A legal process required before filing for an IPO

• A post-IPO celebration party for company employees

Which of the following is a potential advantage for a company going public through an IPO?

• Reduced regulatory scrutiny

• Increased liquidity for existing shareholders

• Decreased access to capital

• Lower underwriting fees

What is the "underwriting" process in an IPO?

• The process of issuing additional shares after the IPO

• The process of pricing the shares for the IPO

• The process of selecting the investment banks to manage the IPO

• The process of assessing the company's creditworthiness before the IPO

During an IPO, shares of a company are typically sold in which market?

• Secondary Market

• Money Market

• Primary Market

• Foreign Exchange Market

How do derivatives differ from traditional investments like stocks and bonds?

• Derivatives are always risk-free

• Derivatives do not involve contracts.

• Derivatives have a fixed maturity date.

• Derivatives derive their value from an underlying asset

Which of the following is NOT a type of derivative?

• Options

• Bonds

• Futures

• Swaps

What is a derivative?

• A financial instrument with a fixed interest rate

• An insurance policy against market volatility

• contract whose value is derived from an underlying asset

• A security issued by the government

What is an options contract?

• A contract that guarantees a fixed return on investment

• A contract to buy or sell an underlying asset at a predetermined price

• A contract to borrow money from a financial institution

• A contract to invest in a mutual fund

What is a "call" option?

• An option to sell an asset at a specified price

• An option to buy an asset at a specified price

• An option to trade an asset at any time

• An option to exchange assets with another party

What is a "put" option?

• An option to sell an asset at a specified price

• An option to buy an asset at a specified price

• An option to trade an asset at any time

• An option to exchange assets with another party