By the way of an underwriter, the sale of a new security is issued to the public a transaction that must be registered with the securities and exchange commission. How is know this process ?

Related Mcqs:

1. Which exchange rate system involves a leaning against the wind|| strategy in which short-term fluctuations in exchange rates are reduced without adhering to any particular exchange rate over the long run ?

   A. pegged of fixed exchange rates
   B. adjustable pegged exchange rates
   C. managed floating exchange rates
   D. free floating exchange rates

2. Pick out the generic term for the securities industry firms that buy sell and underwrite securities ?

   A. Wall street
   B. NASDAQ
   C. Nikkei index
   D. Yahoo index

3. Which of the following is Price of the last transaction of a particular stock completed during a day’s trading session on an exchange ?

   A. Night Price
   B. Closing Price
   C. End price
   D. Final price

4. For the United States suppose the annual interest rate on government securities equals 8 percent while the annual inflation rate equals 4 percent, For Switzerland the annual interest rate on government securities equal 10 percent while the annual inflation rate equals 7 percent the above variables would cause investment funds to flow from ?

   A. the United States to Switzerland causing the dollar to depreciate
   B. the United States to Switzerland causing the dollar to appreciate
   C. Switzerland to the United States causing the franc to depreciate
   D. Switzerland to the United States causing the franc to appreciate

5. For the United States suppose the annual interest rate on government securities equals 12 percent while the annual inflation rate equals 8 percent For Japan the annual interest rate on government securities equals 10 percent while the annual inflation rate equals 5 percent the above variables would cause investment funds to flow from ?

   A. The United States to Japan causing the dollar to depreciate
   B. The United States to Japan causing the dollar to appreciate
   C. The Japan to United States, causing the dollar to depreciate
   D. The Japan to United States, causing the dollar to appreciate

6. The least common type of transaction in the foreign exchange is a ?

   A. forward transaction
   B. spot transaction
   C. swap transaction
   D. None of the above

7. What is underwriter ?

   A. To assume financial responsibility for grantee against failure
   B. To sign so as to assume liability in case of specified losses
   C. To guarantee the purchase or to agree to buy the unsold part of stock at fixed time and price
   D. All of them

8. There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?

   A. Grey market
   B. Over-the counter (OTC)
   C. Open market
   D. Back market

9. A company’s first sale of stock to the public is called ?

   A. Public Offering
   B. First Public Offering
   C. Initial Public Offering (IPO)
   D. Going Public

10. Developments in a national economy can affect the outcome of an international financial transaction. What this process is called ?

    A. International economic risk
    B. Country economic risk
    C. Ultra-country economic risk
    D. Outcome risk