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WorksheetsCapital Market 2023
Total questions: 30
Worksheet time: 13mins
What is an IPO?
Initial Public Offering
Initial Public Offering
International Public Office
Increasing Public Opportunity
Why do companies issue stocks?
To create an investment opportunity into other businesses.
To increase employee cooperation and an operating level.
To be traded individually
To raise money for economic investment and to fund operating costs.
Stock exchange market can only attract local investors.
True
False
Stock exchange is basically the regulatory body that facilitates the buying and selling of stocks.
True
False
True or False: Options are bought and sold at a predetermined price and date.
True
False
When stocks overall are rising, the market is called?
A bull market
A bear market
market capitalization
market diversification
A person who owns shares in a company is called?
A shareholder
A stockbroker
A day trader
venture capitalist
A portion of a company’s earnings that is paid to shareholders, or people that own that company’s stock, on a quarterly or annual basis
Dividend
Interest
Compound Interest
Capital gain
What is the term describing an overall decrease in stock prices?
A bull market
Market capitalization
Market diversification
A bear market
A place in which different investments are traded.
bank
corporation
stock exchange
federal reserve board
Term that refers to the total value of all a company's shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares.
market Volatility
Market Diversification
Market Capitalization
Market Socialization
Issuers may issue the securities at face value, or at a discount/premium.
True
False
The issuers may issue securities in the domestic market only.
True
False
An underwriter may determine the price of specified securities, coupon rate, and conversion price of convertible debt instruments.
True
False
What is the term used to describe the difference between the bid price and the ask price of a stock?
A) Spread
B) Margin
C) Volatility
D) Liquidity
What is the term used to describe a sudden drop in the stock market?
A) Bull Market
B) Bear Market
C) Correction
D) Crash
Insider trading is related to ________.
Share market
Horse racing
Taxation
International trade
Blue Chip means ___________.
Share guaranteed by the government
Share listed in Stock Exchange
Share giving consistent high rate of return
None of the above
What is the term used to describe the process of buying and selling securities within the same trading day?
Day trading
Swing trading
Position trading
Buy-and-hold investing
What is the term used to describe a type of investment that pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities?
Mutual fund
Hedge fund
Venture capital
Pension fund
What is the term used to describe the measure of how much a stock's price moves up and down?
Spread
Margin
Volatility
Liquidity
TRUE or FALSE?
Some companies do not pay dividends because they invest the profit that they make in new projects.
TRUE
FALSE
The governmental agency that oversees the capital markets is the ________
Federal Trade Commission
Federal Reserve
Securities and Exchange Commission
Fair Trade and Banking Agency
Short-term securities are bought and sold in the ________
capital market
primary market
money market
stock market
Companies offering their stock to the public for the first time usually seek the assistance of ________
investment bankers.
the Securities and Exchange Commission.
the Federal Reserve Bank.
prospectors.
The document that describes the issuer of a security's management and financial position is known as a ________
balance sheet.
10-K sheet.
prospectus.
red herring.
Both Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) merged to form a new entity "Indonesia Stock Exchange" (Bursa Efek Indonesia).
True
False
If an asset's expected return is 15%, the risk-free rate is 6%, and the market risk premium is 8%, what is the asset's beta according to CAPM?
0.75
1.25
1.50
2.00
How is the beta coefficient calculated in CAPM?
Covariance between asset returns and market returns divided by market variance
Correlation between asset returns and market returns
Average of asset returns divided by market returns
Standard deviation of asset returns divided by market returns
If the risk-free rate is 4%, the market return is 10%, and the beta is 1.5, what is the expected return according to CAPM?
15%
14%
11%
9%
