1.Which of the following is a Primary Market transaction?

Multiple Choice

• Purchasing a stock on the New York Stock Exchange (NYSE) rather than one of the smaller stock exchanges.

• Making the first transaction of the day with your brokerage firm.

• Buying stock through an app rather than a brokerage website.

• Buying a new issue of a bond directly from the issuer.

• Buying a bond from another bondholder as long as it was the first issue of bond in the company's history

2.Which of the following is NOT true about stock?

Multiple Choice

• When you own stock, you own a piece of the ownership of the company.

• A company cannot discontinue its dividend on common stock without the unanimous consent of the shareholders.

• Stockholders have the right to have someone else vote their shares at annual meetings of a corporation.

• Stock can also be referred to as "Equity".

• Stockholders get to share proportionally in assets remaining after a liquidation.

3.

Which of the following entities currently owns a majority of the shares of stocks listed on U.S. stock exchanges?

Multiple Choice

• Warren Buffett.

• Wealthy individual investors.

• Professional athletes.

• Institutions, primarily mutual fund companies.

• Owners of financial media (television networks and publications such as the Wall Street Journal) companies.

4.

Which of the following is NOT a right that accrues to owners of common stock?

Multiple Choice

• First in line for assets when a company goes through a liquidation.

• Pre-emptive Rights.

• Proxy rights.

• Right to share proportionally in dividends paid to holders of the same class of stock.

• Right to vote on important company matters (unless explicitly stated otherwise in the Prospectus).

5.

The date on which a bond contract ends and the stated amount of the final payment (as spelled out in the bond's Indenture) is made to bondholders is known as what?

Multiple Choice

• Redemption.

• Maturity.

• Par Value.

• Coupon.

• Yield.