Deck 13: Investor Relations

Question 1

The Wall Street Journal,Forbes and Business Week are members of the __________.

A) financial media association
B) financial trade association
C) financial press
D) investor's reporting pool
E) investor's news wire

Answer 1

C

Question 2

What is the first task of financial public relations?

A) create and maintain investor confidence
B) develop relationships with financial columnists
C) develop relationships with financial analysts
D) establish ties with financial media outlets
E) write the annual report

Answer 2

A

Question 3

What types of backgrounds should someone have before pursuing a career in financial relations?

A) public relations and marketing
B) finance and public relations
C) marketing and advertising
D) finance and marketing
E) advertising and finance

Answer 3

D

Question 4

Rule 10B-5 of the SEC regulations makes it unlawful to _____________ in connection with the purchase or sale of any security.

A) make any reactive statements
B) make any untrue statements
C) make any proactive statements
D) make any true statements
E) make any stock price statements

Question 5

Consistency,credibility and clarity are all major characteristics of a _____________.

A) annual report
B) annual meeting
C) corporate communication strategy
D) financial press release
E) corporate report

Question 6

In the 1980s,Nestle acquired what major company that violated SEC rules related to disclosure?

A) Chrysler
B) M & M Mars
C) Lipton
D) Carnation
E) Michelin

Question 7

Which of the following reports is a corporation's annual report?

A) Form 10-K
B) Form 10-Q
C) Form 8-K
D) Form 18-K
E) Form 1040-A

Question 8

A tender offer is when _____________________.

A) a company makes a low price offer for stock
B) a company makes a high price offer for stock
C) two companies strive for control of management
D) a company makes equal price offer for stock
E) two companies make high offers for stock

Question 9

__________ are meetings that investment professionals attend specifically to hear company presentations or discuss corporate issues.

A) conference calls
B) annual meetings
C) investment conferences
D) financial meetings
E) proxy meetings

Question 10

Announcement of a significant new product or discovery is required by the _____________________.

A) the federal government
B) the SEC
C) the American Stock Exchange
D) the IRS
E) None of these

Question 11

SEC regulations apply to all companies with assets of _____________.

A) $100,000
B) $500,000
C) $1,000,000
D) $2,000,000
E) $5,000,000

Question 12

What government agency deals with cases of insider trading?

A) Federal Trade Commission
B) Department of Labor
C) Federal Communications Commission
D) Department of Commerce
E) Securities & Exchange Commission

Question 13

SEC reports are typically prepared by _____________.

A) CEOS
B) public relations practitioners
C) marketers and advertisers
D) senators and commissioners
E) accountants and lawyers

Question 14

The money with which other resources can be purchased is known as ________.

A) revenue
B) cash flow
C) expenses
D) capital
E) profit margin

Question 15

The growing number of companies "going public" have forced tougher requirements for disclosure of information.

A) "going public"
B) "cheating investors"
C) "targeting minors"
D) "officing overseas"
E) None of these

Question 16

The New York Stock Exchange requires news of corporate significance to be distributed _________.

A) locally
B) regionally
C) nationally
D) internationally
E) in two languages

Question 17

Which of the following news wires requires a fee for services?

A) PR News Wire
B) Reuters
C) Dow Jones
D) Associated Press
E) UPI

Question 18

Fund managers,brokers,and institutional buyers are commonly referred to as _________.

A) financial analysts
B) financial columnists
C) financial stockholders
D) investment relations experts
E) investment specialists

Question 19

One of the principles of sound stockholder relations is ___________________.

A) only disclose bad news when forced by ruling
B) encourage investment from people predisposed to support your company
C) provide only the required information to stockholders
D) All of these
E) None of these

Question 20

What was the first major case dealing with insider trading?

A) Enron
B) Texas Gulf Sulphur
C) ImClone
D) Napster
E) NASDAQ

Question 21

The Sarbanes-Oxley Act requires

A) reporting of stock trades by company insiders
B) public reporting of CEO compensation packages
C) creation of independent accounting oversight board with SEC oversight
D) all of the above
E) none of the above

Question 22

What financial media company has become a major provider of financial news and information in cable television,radio,newspapers,websites and magazines?

A) Reuters
B) Bloomberg
C) Wall Street Journal
D) CNBC
E) Business Week

Question 23

Trend in annual reports is

A) to include bad news with the good news
B) to CEOs to write their own letters
C) to contract out the publication of the report
D) all of these
E) none of these

Question 24

______________ have been called "unquestionably the single most important public document(s)released by a publically held corporation."

A) Mission statements
B) News releases
C) Tender offers
D) Annual reports
E) Stock exchange policies

Question 25

______________ showcase the opportunity for the actual owners of the company,the stockholders,to feel like they are taking part in the company.

A) Annual reports
B) News releases
C) Annual meetings
D) Christmas parties
E) None of these