29._____Purchasing power risk is also known as

a. inflation risk.

b. recession risk.

c. business risk.

d. all of the above.

e. more than one, but not all, of the above.

30.______Who of the following is (are) risk averse?

a. The Flying Wallendas

b. Donald Trump

c. Warren Buffet

d. all of the above.

e. more than one, but not all, of the above.

CHAPTER 6 Common stocks

31.______Common stock owners are (BEST ANSWER!)

a. people who are not sufficiently sophisticated for preferred stocks.

b. commoners.

c. not royalty.

d. the true owners of a company.

e. first in line for payouts when a company goes bankrupt.

32._____Common stocks are

a. a good short-term hedge during times of rampaging inflation.

b. a good long-term hedge against inflation.

c. completely unresponsive to inflation; that risk is applicable only to bondholders.

d. a risky investment that should be avoided by all but habitus of Las Vegas and the like.

e. none of the above.

33.______According to your instructor,

a. you should avoid common stocks.

b. you should avoid bonds.

c. you should avoid real estate.

d. you should avoid preferred stock.

e. paraphrasing the great, though fictional, Al Czervik, if you dont own stocks for the long run, you own a popcorn farm.

34.______How many initial public offerings (IPOs) can a company have?

a. one

b. two

c. three

d. as many as the companys management would like and the market, and the SEC, will allow.

e. 4,233,614

35.______How many secondary public offerings can a company have?

a. one

b. two

c. three

d. as many as the companys management would like and the market, and the SEC, will allow.

e. 4,233,614