1. Which of the following is most popular during sustained periods of high interest rates?

A.corporate bonds

B.mutual funds

C.real estate

D.stock

2. Which one of the following statements concerning initial public offerings (IPO's) is correct?

A.Initial public offerings are basically an unregulated process.

B.Most companies offer their stock directly to the public without the help of investment bankers.

C.Most initial public offerings (IPO's) are underwritten by an investment banking firm.

D.The price of initial public offerings (IPO's) typically falls significantly on the first day of trading.

3 Which one of the following statements about the NASDAQ trading system is correct?

A.The NASDAQ trading system is limited to stocks of relatively small and new companies..

B.Dealers electronically post their bid/ask prices and orders are filled at the best available price.

C.Stocks are traded on the floor of an organized exchange.

D.Listed stocks are traded by specialists who are charged with maintaining a fair and orderly market.

4. Assume that an investor buys 100 shares of stock at $35 per share, putting up a 74%margin.

a. What is the debit balance in this transaction?

b. How much equity funds must the investor provide to make this margin transaction?

c. If the stock rises to $59 per share, what is the investor's new margin position?