In the context of equities What is called a firm with two divisions that may split into two companies and issue original shareholders two shares for every old share they have ?

Related Mcqs:

1. In the ultimatum game, what split would be rational for both the person proposing the split and the person who must accept or reject the split ?

   A. There is no rational solution
   B. 75/25
   C. 99/1
   D. 1/99
   E. 50/50

2. Blue chip company is used in the context of general equities. What does it refer ?

   A. A multinational company
   B. Large and creditworthy company
   C. A conglomerate company
   D. A consortium of companies

3. How is known the process in which an investment company continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies ?

   A. combine fund
   B. Mutual fund
   C. Liquid fund
   D. Stock holding company

4. Name the company in which the liability of the shareholders is limited to the amount of their shares ?

   A. Limited company
   B. Incorporation
   C. Cooperative
   D. Corporation

5. There is an arrangement which allows a firm to use research from another firm at no cost in exchange for executing all of its trades with the firm that provides the research. What this arrangement is called?

   A. Mutual arrangement
   B. Quid Pro quo
   C. Bilateral arrangement
   D. common interest

6. What occurs when a firm’s business is terminated Assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders ?

   A. Solvency
   B. Crash
   C. Bankruptcy
   D. Liquidation

7. Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?

   A. lower return and a lower level or risk
   B. lower return and a higher level of risk
   C. higher return and a lower level or risk
   D. higher return and a higher level of risk

8. Term the authorization whether written or electronic, that shareholders’ votes may be cast by others ?

   A. Proxy vote
   B. Absentia vote
   C. Remote vote
   D. Casting vote

9. In the context of contracts, what refers to secret payments made to ensure that the contract goes to a specific firm ?

   A. kickback
   B. Commission
   C. Bribe
   D. Graft

10. Shareholders of a corporation elect individuals to carry out certain tasks that are establishment in the charter. What these individuals are called ?

    A. Management
    B. Board of Governor
    C. Top brass
    D. Board of Directors