Question: The residual claims, limited rights, limited liability and dividend payments on discrete basis are considered as ____________?

• 1. characteristics of fundamental stock
• 2. characteristics of claimed stock
• 3. characteristics of common stock
• 4. characteristics of preferred stock

Question: The feature of stock which allows stock holders to buy the shares below than market price is called __________?

• 1. shares offering
• 2. price offering
• 3. rights offering
• 4. stock offering

Question: The capital gains and dividends are considered as components of __________?

• 1. return
• 2. equity
• 3. spot rate contracts
• 4. forward rate contracts

Question: The swaps that are classified as long term contracts are ___________?

• 1. currency swaps
• 2. notion swaps
• 3. floating swaps
• 4. fixed swaps

Question: The capital gains are 14% and the periodic payments to stock holder are 11% then the return on stock investment for stock holder is __________?

• 1. 0.3
• 2. 0.24
• 3. 0.25
• 4. 0.15

Question: The prospectus which describe the new securities are distributed before their registration is classified as ____________?

• 1. red herring prospectus
• 2. white herring prospectus
• 3. preemptive prospectus
• 4. securitized prospectus

Question: The type of preferred stock whose payments are missed and must be paid before paying dividends of common stock is classified as ___________?

• 1. non participating preferred stock
• 2. participating preferred stock
• 3. non-cumulative preferred stock
• 4. cumulative preferred stock

Question: The form of market efficiency which states that prices of stock reflects the public and private information of the firm is classified as ___________?

• 1. weak form of market efficiency
• 2. strong form of market efficiency
• 3. semi-strong form market efficiency
• 4. expensive form market efficiency

Question: The security which has characteristics of common stock and bonds both at same time is classified as ___________?

• 1. preferred stock
• 2. voted stock
• 3. cumulative stock
• 4. fundamental stock

Question: The intrinsic value of an option is $490 and the price of underlying asset is $290 then the exercise price of an option is ___________?

• 1. 290
• 2. 780
• 3. 490
• 4. 200