Investment Banking7

Dividends are paid________________

• monthly.

• quarterly

• semi-annually

• yearly

The return component that gives periodic cash flows to the investor is known as the______________.

• capital gain

• interest rate

• yield

• unrealized gain

Financial risk is most associated with_______________.

• the use of equity financing by corporations

• the use of debt financing by corporations

• Equity investments held by corporations

• Debt investments held by corporations

Speculators in the futures markets ____________

• make the market more volatile.

• contribute liquidity to the market.

• engage mainly in short sales

• serve no real economic function.

In an underwriting arrangement, the risk is assumed by the _______________

• issuer of the security.

• investment bankers.

• commercial bankers.

• institutional investors.

Investment is the __________________

• Net additions made to the nation’s capital stock

• Persons commitment to buy a flat or house

• Employment of funds on assets to earn returns

• Employment of funds on goods and services that are used in production process

Investment bankers are compensated by___________

• the underwriting spread

• commissions paid by the buyers of the security

• commission paid by the sellers of the security.

• guaranteed investment contracts.

f interest rates are expected to rise, you would expect___________.

• bond prices to fall more than stock prices.

• bond prices to rise more than stock prices.

• stock prices to fall more than bond prices.

• stock prices to rise and bond prices to fall.

Bombay stock exchange was recognized on a permanent basis in___________.

• 1950

• 1956

• 1957

• 1965