70. A stock option grants the holder the right to:

a) Purchase or sell a specified number of shares at a predetermined price

b) Receive regular dividend payments from a company

c) Vote on corporate governance matters

d) Borrow shares from a broker-dealer

71. The term "blue-chip stocks" refers to:

a) Stocks of companies with a high market capitalization

b) Stocks of companies with a low price-to-earnings (P/E) ratio

c) Stocks of companies in emerging markets

d) Stocks of companies in the technology sector

72. The Efficient Market Hypothesis suggests that:

a) It is impossible to consistently outperform the market

b) Stock prices always reflect all available information

c) Investors can accurately predict market downturns

d) Technical analysis is a reliable method for stock selection

73. What is the primary purpose of a prospectus?

a) To provide information about the company issuing the securities

b) To outline the terms and conditions of a bond offering

c) To disclose potential risks associated with an investment

d) To provide financial advice to potential investors

74. A bull market is characterized by:

a) Rising stock prices and investor optimism

b) Falling stock prices and investor pessimism

c) Stable stock prices and low trading volumes

d) High inflation and economic expansion

75. Which of the following is an example of a primary market transaction?

a) Buying shares of stock on a stock exchange

b) Selling shares of stock on a stock exchange

c) Participating in an initial public offering (IPO)

d) Trading options contracts on a futures exchange