Wall Street Final Exam

Of the following ownership types, which makes stock available for anyone to buy?

• Public Corporation
• Sole Proprietorship
• Private Corporation
• Partnership

Which of the following describes using an investor to provide funds in exchange for ownership?

• Startup costs
• Operating Expenses
• equity financing
• debt financing

When company management goes to investment bankers to negotiate an agreement to underwrite a stock offering this is referred to as a(n)

• Primary market
• Secondary market
• SEC
• Initial Public Offering

As discussed in class, companies can offer two types of stock, common and preferred. Which of the following applies only to common stock holders?

• Dividends
• Preferential payment
• voting rights
• exclusion from most company profit

Which of the following is the ticker symbol for Coca Cola, as discussed in class?

• KO
• CC
• KK
• CL

A company that owns another company which operates under it is referred to as

• Sub corporation
• Child company
• parent company
• subsidiary

A person who is over 50 and holds significant financial obligation will likely possess a _________________ risk tolerance level.

• Conservative
• Speculative
• moderate
• risky

The ___________shows how a particular stock's price moves in relation to the market as a whole.

• P/E ratio
• Market cap
• ticker
• beta number

The total dollar market value of a company's outstanding shares refers to it’s

• Risk tolerance
• Beta number
• portfolio
• market cap

An investment strategy in which you spread your investment dollars among industry sectors.

• Diversification
• Admonition
• blue chip
• none of the above