Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Certdemy free practice questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Warrants are said to be which of the following?
Correct
Warrants are derivative securities that allow the investor to buy securities directly from the issuer at a given price within a defined period of time.
Incorrect
Warrants are derivative securities that allow the investor to buy securities directly from the issuer at a given price within a defined period of time.
-
Question 2 of 10
2. Question
Investors use discounted cash flow in their evaluation of bonds by applying which of the following discounts to their overall return on investment in today’s dollars?
Correct
Investors use discounted cash flow in their evaluation of bonds by applying the time value discounts to their overall return on investment in today’s dollars.
Incorrect
Investors use discounted cash flow in their evaluation of bonds by applying the time value discounts to their overall return on investment in today’s dollars.
-
Question 3 of 10
3. Question
Which of the following bonds is issued to pay for improvements that benefit a community, but does not produce income?
Correct
General obligation (GO) bonds are the first type. These are issued to pay for improvements that benefit a community, but don’t produce income. They are also known as “full faith and credit issues,” because they are repaid from tax revenue raised by the issuing government entity.
Incorrect
General obligation (GO) bonds are the first type. These are issued to pay for improvements that benefit a community, but don’t produce income. They are also known as “full faith and credit issues,” because they are repaid from tax revenue raised by the issuing government entity.
-
Question 4 of 10
4. Question
The coupon of a bond can also be referred as which of the following?
Correct
The coupon of a bond is the fixed rate of interest paid to the investor holding the bond.
Incorrect
The coupon of a bond is the fixed rate of interest paid to the investor holding the bond.
-
Question 5 of 10
5. Question
Which of the following theories state that an investment that bears high risk should return high rewards worth accepting the risk associated with the investment?
Correct
The risk/reward theory states that an investment that bears high risk should return high rewards to be worth accepting the risk associated with the investment.
Incorrect
The risk/reward theory states that an investment that bears high risk should return high rewards to be worth accepting the risk associated with the investment.
-
Question 6 of 10
6. Question
A stock that is held in a company that was not offered as part of an initial public offering is known as:
Correct
Restricted stock is stock that is held in a company that was not offered as part of an initial public offering.
Incorrect
Restricted stock is stock that is held in a company that was not offered as part of an initial public offering.
-
Question 7 of 10
7. Question
Which is the following statements is true?
Correct
Gains from investments on municipal bonds are ordinarily not taxed. Taxable municipal bonds can be issued if the purpose of the bond revenue has no clear public benefit, but most municipal bonds are tax-exempt. This means not only that coupon payments are not taxed, but also that gains from original issue discount (OID) bonds are tax-exempt as well. Accretion on the discount of municipal OID bonds is treated as tax-exempt interest income. Discounts on municipal bonds purchased in the secondary market are not even accreted.
Incorrect
Gains from investments on municipal bonds are ordinarily not taxed. Taxable municipal bonds can be issued if the purpose of the bond revenue has no clear public benefit, but most municipal bonds are tax-exempt. This means not only that coupon payments are not taxed, but also that gains from original issue discount (OID) bonds are tax-exempt as well. Accretion on the discount of municipal OID bonds is treated as tax-exempt interest income. Discounts on municipal bonds purchased in the secondary market are not even accreted.
-
Question 8 of 10
8. Question
Which of the following bonds is also known as “full faith and credit issues”?
Correct
General obligation (GO) bonds are the first type. These are issued to pay for improvements that benefit a community, but don’t produce income. They are also known as “full faith and credit issues,” because they are repaid from tax revenue raised by the issuing government entity.
Incorrect
General obligation (GO) bonds are the first type. These are issued to pay for improvements that benefit a community, but don’t produce income. They are also known as “full faith and credit issues,” because they are repaid from tax revenue raised by the issuing government entity.
-
Question 9 of 10
9. Question
Which of the following stocks is the most volatile of all securities?
Correct
Common stock tends to be the most volatile of all securities, with high gains or losses possible intraday.
Incorrect
Common stock tends to be the most volatile of all securities, with high gains or losses possible intraday.
-
Question 10 of 10
10. Question
Each share of equity securities represents:
Correct
Equity securities, most commonly referred to as stocks, are sold as individual shares of a company. Each share represents a certain percentage of ownership in a company. They are issued by the company and sold at an initial offering and on the secondary market thereafter, wherein investors determine the value of the shares in a bid/ask manner.
Incorrect
Equity securities, most commonly referred to as stocks, are sold as individual shares of a company. Each share represents a certain percentage of ownership in a company. They are issued by the company and sold at an initial offering and on the secondary market thereafter, wherein investors determine the value of the shares in a bid/ask manner.