32. A manager who exhibits more of a Laissez-Faire type of leadership is a manager who would be best utilized in the following work environment:

a. the local hospital b. the NASA research lab c. the U.S. Post Office d. the U.S. Military e. the check-out lane a Kroger

33. John is the senior vice president of his company. He learned at a senior staff meeting that the companys research staff has made an amazing discovery that is almost certain to result in several profitable new patents. He is confident that once this information becomes public knowledge, the price of his companys stock will soar. He calls his broker and places an immediate order to buy 5,000 additional shares of stock in the company. Johns actions are:

a. perfectly legal, because he didnt obtain the information illegally. b. an example of illegal insider trading. c. an example of trading on the margin, which is legal. d. an example of preemptive buying, which is technically legal but considered highly unethical by

34. Sally owns a bond with a maturity value of $1,000 and a coupon rate of 15 percent. She will receive in annual interest until the bond reaches maturity, or he sells the bond to someone else.

a. $7.50

b. $50

c. $150

d. $1500

e. none of the above

35. Individual investors are not permitted to directly trade stocks on the NYSE or NASDAQ. Therefore, individuals must seek the help of a(n) .

a. underwriter. b. banker c. investment banker

d. broker

36. The objective of the long position in stock investment strategy is to:

a. predict changes in stock prices in order to earn a positive profit by buying high and selling low.

b. getting completely out of the stock market when stock prices begin to rise. c. identify new companies with potential and buy their stock before the stick price begins to rise

d. hold a diversified portfolio of stocks for a long period of time in order to take advantage of the

downward trend in the stock market

37.Jasmine is an investment broker for a large firm. Understanding overall market conditions helps her advise her clients who invest in stocks. Which of the following are indices that are commonly used to describe the price movement of securities in the U.S. market?

A. Fortune 500 and the Turbo 900

B. The Nikkei 225 Index and the Boston Big Index

C. The FTSE 100 and the SSE Composite

D. The DJIA and the S&P 500

38. White collar crime is a victimless crime.

a. True b. False

39. The price-to-earnings ratio:

A. develops an investors knowledge of the price of various stocks in a single industry

B.is of little value to investors these days due to the fact that market values far exceed earnings

values.

C.is important to investors because a higher P/E ratio means lesser growth in earnings over

time.

D.is important to investors because a higher P/E ratio means greater growth in earnings over time.

40. The corporations that issue stocks and bonds do not receive any funds from sales on the secondary market.

a. True b. False