(1)Which of the following is not a service that is commonly performed by a securities firm?

a.setting regulatory rules for stock exchanges

b.origination

c.underwriting

d.distribution

Your Answer:

(2)The _____ is not involved in the regulation of the securities industry

a.Financial Accounting Standards Board

b.National Association of Securities Dealers

c.Securities and Exchange Commission

d.Federal Reserve Board

Your Answer:

(3)How do securities firms facilitate leveraged buyouts? Why are securities firms that are more capable of raising funds in the capital markets preferred by corporations that need advice on proposed acquisitions?

Your Answer:

(4)A ____ plan allows a firm to know with certainty the amount of funds to contribute. The _____ plan allows a firm to know with certainty the amount of benefits that must be provided.

a.defined benefit; defined benefit

b.defined contribution; defined contribution

c.defined contribution; defined benefit

d.defined benefit; defined contribution

Your Answer:

(5)To cover managerial and other expenses, mutual funds typical charge:

a.management fee of less than 2 percent of total assets per year

b.commissions of typically 8 to 10 percent on purchases or sales of securities

c.management fee of typically more than 10 percent of total assets per year

d.a one time load of 5 percent upon initial investment in the mutual fund

Your Answer:

(6)Explain why mutual funds are attractive to small investors. How can mutual funds generate returns to their shareholders?

Your Answer: