Knowledge of Capital Markets
Where issuers sell their securities to the public for the first time…
What is the primary market?
This is a long term instrument that allows the investor to purchase the security at a later date, at the specified price. (a. A call, b. a stock right, c. a warrant, or d. a follow-on offering)
What is c. warrant?
May be modified by the grantor (a. Irrevocable Trust OR b. Revocable Trust)
What is b. Revocable Trust?
This is set at the time of issue. (a. Nominal Yield OR b. Current Yield)
What is a. Nominal Yield?
Where investors can easily buy and sell securities…
What is the secondary market?
These trusts usually own commercial properties or mortgages (a. ETFs, b. REITs, or c. ETNs)
What are b. REITs?
The market where investors can easily buy and sell securities…
What is the secondary market?
These stockholders have voting rights (a. Common b. Preferred)
What is a. Common?
Phases of the business cycle (a. Trough, Peak, Contraction, Expansion OR b. Peak, Contraction, Trough, Expansion)
What is b. Peak, Contraction, Trough, Expansion?
Mutual Funds are (a. Closed-End OR b. Open-End) Companies.
What are b. Open-End?
Was first authorized under the law by the Employee Retirement Income Security Act of 1974 (a. IRA or b. RMD)
What is a. IRA?
The buyer of a call contract wants the stock to go (a. Down OR b. Up)
What is b. Up?