FIN250 CHAPTER 6

"Capital market is the place where - term funds are raised "which is is the right word to put in that sentence?

• long

• short

• mid

What are the markets included in the financial markets?

• Money Market

• Foreign Exchange Market

• Capital Market

• International Market

i)A firm needs money for business operations.

ii)In return, investors gain profits as well as goods and services.

iii)Borrows it from individuals by issuing equity and bond.

iv)The money invested in a firm's shares and bonds.

• i > ii > iii > iv

• i > iii > iv > ii

• iii > iv > i > ii

• ii > i > iv > iii

One of the disadvantages of investing in - - is the shareholders are not allowed to vote during annual general meeting

Bond market deals with public and private debt securities with maturity more than one year

• true

• false

Companies Commission of Malaysia: Requires issuers to register - and provide information in the prospectus that complies with BNM.

Capital market is the place for short term investing and capital building

• true

• false

What is the par value of bonds?

• RM100

• RM1000

• RM10000

Bond is a debt instruments issued by the companies to provide finance (short term as well as long term) for their growth, investments and future planning.

• true

• false

Limited liability : In case of bankruptcy, the common stockholders' liability is limited to the amount of their - - or investments.