In a rights offering, the A) existing stockholders are given the first opportunity to purchase new shares in proportion to their current ownership position. B) underwriter offers the investing public a certain number of shares at a certain price.
True Different classes of stock generally have either different voting rights or different dividends. True Electronic trading systems have increased transaction costs of odd-lot trades. False Since each share of common stock represents ownership in a company, shares of common stock are often referred to as
Shareholders must either exercise their rights granted via a rights offering or let them expire unused. False Corporations often split their stocks when they believe that the price makes them less attractive to average investors. True The total value of an investor's holdings in a company will increase as a direct result of a stock split.
Companies typically issue new shares through an initial public offering (IPO True Shareholders must either exercise their rights granted via a rights offering or let them expire unused. False
anytime. the trader decides the expiration date.
the purpose of pre-emptive rights is to allow shareholders to
saving time on issuing securities, allows issuer to determine which investment bank offers the best service
b. Johnson & Johnson issues 2,000,000 shares of new stock and sells them to the public through an investment banker.
The justification for the "light" regulation of hedge funds is that only "sophisticated" investors with high net worths and high incomes are permitted to invest in these funds , and such investors supposedly can do the necessary "due diligence" on their own rather than have it done by the SEC or some other regulator.
e. As they are generally defined, money market transactions involve debt securities with maturities of less than one year.
c. Hedge funds have more in common with investment banks than with any other type of financial institution.
Bonds A and B are 15-year, $1,000 face value bonds. Bond A has a 7% annual coupon, while Bond B has a 9% annual coupon. Both bonds have a yield to maturity of 8%, which is expected to remain constant for the next 15 years.
d. Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.
c. The NYSE does not exist as a physical location; rather, it represents a loose collection of dealers who trade stocks electronically.