Question 1

What is the general relation of the two types of prices quoted for a stock on a exchange?

Accepted Answer

The answer of What is the general relation of the...

Question 2

What are the main differences between the TSX and the TSX Venture Exchange?

Accepted Answer

The answer of What are the main differences between the...

Question 3

Which type of financial institution receives money in the form of investments by wealthy individuals and endowments and invests in any kind of investment with an attempt to maximize returns for relatively low risk?

Accepted Answer

Hedge funds receive money from high net worth individuals and endowments and invest in a variety of assets such as stocks, bonds, commodities, and derivatives with the goal of generating high returns while minimizing risk. They have more flexibility than mutual funds in terms of investment strategies and can employ leverage and short-selling techniques. This makes them a good choice for sophisticated investors looking for higher returns with potentially lower risk. Pension funds invest in a diversified portfolio of assets to achieve long-term growth, whereas venture capital and private equity funds invest in early-stage or private companies.

Question 4

What is the term for the applicable price that I will pay,if I have to buy a stock?

Accepted Answer

The answer of What is the term for the applicable...

Question 5

Which type of financial institution receives money in the form of deposits and loans it out to people and businesses?

Accepted Answer

Banks and credit unions are the types of financial institutions that receive money in the form of deposits and loans it out to people and businesses. Insurance companies, mutual funds, pension funds, and hedge funds have different business models and sources of income.

Question 6

Which type of financial institution receives money in the form of investments by wealthy individuals and endowments and purchases whole companies by using a small amount of equity and borrowing the rest?

Accepted Answer

Private equity funds receive money in the form of investments by wealthy individuals and endowments and purchase whole companies by using a small amount of equity and borrowing the rest. This is also known as leveraged buyouts (LBOs).

Question 7

Raising new capital by issuing bonds is an example of a commercial banking activity.

Accepted Answer

Raising new capital by issuing bonds is an example of an investment banking activity, not a commercial banking activity. Commercial banks engage in activities like accepting deposits, making loans, and providing other financial services to individuals and businesses.

Question 8

What are the terms for the two types of prices quoted for a stock on an exchange?

Accepted Answer

The answer of What are the terms for the two...

Question 9

Companies that attract the interest of just a few investors are said to be:

Accepted Answer

Thinly traded means that there are not many investors interested in buying or selling the stock, leading to low trading volumes.

Question 10

Use the figure for the question(s)below. 
-How much money would a stock exchange make from buying and selling 500 shares of the stock under the conditions shown above?

Accepted Answer

The answer of Use the figure for the question(s)below. 
-How...

Question 11

What is the term for the applicable price that the seller gets when he sells a stock on the exchange?

Accepted Answer

The answer of What is the term for the applicable...

Question 12

Which type of financial institution is involved in many different aspects of the financial cycle,brokering many of the transactions that take place between institutions?

Accepted Answer

Investment banks are involved in multiple aspects of the financial cycle, including underwriting and selling securities, providing advisory services to clients, and brokering transactions between institutional clients. They play a significant role in the global financial system, especially in the areas of mergers and acquisitions, debt and equity fundraising, and trading. While banks and credit unions also play a critical role in the financial system, they are typically more focused on providing deposit and loan services to individuals and small businesses. Mutual funds, hedge funds, and private equity funds are all investment vehicles that manage assets on behalf of investors, but they are not typically involved in the same range of activities as investment banks.

Question 13

Put the following steps of the financial cycle in the correct order: I.Money flows to companies who use it to fund growth through new products.

Accepted Answer

The correct order of the financial cycle is:
II. Investors invest money into companies through stocks and bonds. 
I. Money flows to companies who use it to fund growth through new products.
III. As companies grow and make profits, they distribute those profits to investors through dividends or reinvest it back into the company.
Therefore, the correct order is II, I, III, which is only found in option B.

Quiz 1: Corporate Finance and the Financial Manager

What is the general relation of the two types of prices quoted for a stock on a exchange?

What are the main differences between the TSX and the TSX Venture Exchange?

Which type of financial institution receives money in the form of investments by wealthy individuals and endowments and invests in any kind of investment with an attempt to maximize returns for relatively low risk?

What is the term for the applicable price that I will pay,if I have to buy a stock?

Which type of financial institution receives money in the form of deposits and loans it out to people and businesses?

Which type of financial institution receives money in the form of investments by wealthy individuals and endowments and purchases whole companies by using a small amount of equity and borrowing the rest?

Raising new capital by issuing bonds is an example of a commercial banking activity.

What are the terms for the two types of prices quoted for a stock on an exchange?

Companies that attract the interest of just a few investors are said to be:

Use the figure for the question(s) below. -How much money would a stock exchange make from buying and selling 500 shares of the stock under the conditions shown above?

What is the term for the applicable price that the seller gets when he sells a stock on the exchange?

Which type of financial institution is involved in many different aspects of the financial cycle,brokering many of the transactions that take place between institutions?

Put the following steps of the financial cycle in the correct order: I.Money flows to companies who use it to fund growth through new products.