Which best describes the first time a firm's shares are offered to the public?

1. Initial public offering

2. First corporate financing

3. Primary market

4. Secondary market

Nicole purchased 4,000 shares of TC Energy Corporation in January 2021 at a price of $54 per share. She expects the company to pay dividends of $3.50 per share during 2021. Nicole plans on selling her shares when they hit $65 per share. Based on analysts' forecasts, she expects these shares will hit her target price after one year.

If all turns out as planned, what would be her return?

1. 17%

2. 27%

3. 22%

4. 20%

Which investment embodies both default and interest rate risk (ie. its price can change in response to changes in interest rates)?

Points: 1

1. Common shares

2. Money market mutual fund

3. Long-term bonds

4. Guaranteed investment certificates (GICs)