1.Which of the following is an electronic exchange and does not have a physical location?

A. New York Stock Exchange

B. American Stock Exchange

C. Money market

D. NASDAQ

2. If a stock has a dividend yield of 1.50%, and pays an annual dividend of $.80, its price is:

A. $53.33.

B. $21.00.

C. $11.25.

D. None of these choices are correct

3.Which of the following is not true concerning privately held companies?

A. Cannot make sales solicitations across state lines.

B. Sales are severely restricted by federal regulation.

C. Stock cannot be sold to anyone other than current stockholders.

D.Generally does not have a large number of shareholders.

4.Stock and bond markets:

A. offer returns that tend to move up and down together although equity returns are higher because stocks are riskier than bonds.

B. are independent of each other as to prevailing rates of return.

C. would offer identical returns if the respective investments had identical terms to maturity.

D. offer identical returns in order to compete for the investors' dollars

5. Non-amortized debt requires:

A. principal to be repaid annually and interest to be paid semiannually.

B. interest to be paid regularly and principal to be repaid at maturity.

C. both interest and principal to be paid annually.

D. None of these choices are correct.

.