Stock Market and Bankruptcy (total)

What term is used to describe a situation in the stock market where asset prices are much higher than their intrinsic values?

• Stock index

• Fundamentals

• Bubble

• Efficient market

What is the term for the process by which a private company offers shares to the public for the first time?

• Stock index

• Initial public offering

• Principal-agent problem

• Bankruptcy

Which term refers to a conflict of interest arising between creditors and equity holders within a company?

• Fundamentals

• Bubble

• Creditors

• Principal-agent problem

What is the term for a legal proceeding involving a person or business that is unable to repay outstanding debts?

• Initial public offering

• Principal-agent problem

• Bankruptcy

• Efficient market

Which term refers to a reorganization bankruptcy for corporations, allowing them to continue to operate while they follow a debt repayment plan?

• Chapter 7 Bankruptcy

• Chapter 11 Bankruptcy

• Chapter 13 Bankruptcy

• Chapter 9 Bankruptcy

What type of bankruptcy allows individuals with a regular income to develop a plan to repay all or part of their debts?

• Chapter 7 Bankruptcy

• Chapter 11 Bankruptcy

• Chapter 13 Bankruptcy

• Chapter 9 Bankruptcy

What does owning a share of common stock in a company entitle the shareholder to?

• A fraction of the company's annual profits

• A fraction of the vote in determining membership on the board of directors

• A fraction of the company's total assets

• A fraction of the company's liabilities

What is another guaranteed benefit that a shareholder may receive from owning a share of preferred stock?

• A share of the CEO's salary

• A share of the company's intellectual property

• A share of the declared dividends of the company

• A share of the company's office supplies

Which type of stock offers voting rights to its shareholders?

• Preferred Stock

• Common Stock

• Both Common and Preferred Stock

• Neither Common nor Preferred Stock

How do dividends behave with common stock compared to preferred stock?

• Dividends are set for common stock and fluctuate for preferred stock

• Dividends fluctuate for both common and preferred stock

• Dividends are set for both common and preferred stock

• Dividends fluctuate for common stock and are set for preferred stock