21A Quiz 2 PoF 23/24

Both individual and institutional investors have the opportunity to purchase the securities ________.

• private offering

• secondary offering

• public offering

• primary offering

The market where currently outstanding securities are traded in the ________.

• secondary market

• primary market

• bond market

• marketable securities markets

In a private placement, the securities are offered and _______ to a limited number of potential investors.

•  transferred directly

• discounted privately

• traded privately

• sold directly

The new business may go directly to a wealthy private investor called a _______ for funds or it may go to a ______ for early funding.

•  business angel & foreign investors

• venture capitalist & private investors

• business angel & venture capitalist

• private investor & banker

The direct transfer of funds is where a firm seeking cash sells its securities directly to the savers (investors) who are willing to purchase them in hopes of earning a large return. __________ is a good example of this process at work.

• an established firm

• a startup firm

• a manufacturing firm

• an auctioned firm

All the financial institutions that help a business raise long-term capital, where “long-term” is defined as a security with a maturity period of more than one year the trading transaction happened in ___________.

• long term financial instruments markets

• capital markets

• money markets

• primary markets

The underwriting process involves the ___________ of a new security issue with the risk of selling the new issue at a satisfactory price being assumed by the investment bankers.

• purchase and subsequent resale

• B. selling and repurchase back

• C. auctions and subsequent selling

• D. revalued and repurchased 

The initial occasion when a company offers its stock to the public is termed an _________. Google experienced this on August 19, 2004, when it initially sold its common stock to the public at a price of USD 85 per share, raising USD 1.76 billion. In September 2005, when Google returned to the _________ and sold more of its stock, generating an additional USD 4.18 billion, it was categorized as a seasoned equity offering (SEO).

• primary offering & money market

• initial private offering & financial market

• auctions public offering & stock market

• initial public offering (IPO) & primary market

Organized security exchanges are the formal organizations that facilitate the _________.

• trading of securities

• direct transfer of funds

• trading of bonds and debts

• resale of financial instruments

The central bank of Malaysia is knowns as Bank Negara Malaysia (BNM) with the main role to promote monetary and financial stability for the country. This includes the need for _________ of the Malaysian economy. For this purpose, the BNM is aimed at providing a conducive environment.

• increasing the interest rates

• sustaining the value of USD

• sustainable growth

• sustaining the interest rates