21D Quiz 2 PoF 23/24

The term capital markets mean all the ___________ that help a business raise long-term capital, where “long-term” is defined as a security with a maturity period of __________.

• stock exchange & more than 10-year

  
  

• financial institutions & more than 5-year

  
  

• stock exchanges & more than 3-year

•  financial institutions & more than 1-year

The firm seeking cash sells its securities directly to the savers (investors) who are willing to purchase them in hopes of ______________. This is known as a direct transfer of funds.

•  increasing the large number of shareholders

  
  

• earning some profits

•  increasing the shareholders’ wealth

• earning a large return

Both corporations and investors enjoy several benefits provided by the existence of organized security exchanges. These include providing continuous markets, ____________________, and helping businesses raise new capital.

• establishing the new shareholders

• establishing and publicizing fair security prices

• establishing and marketing new price of the shares

• establishing efficient new shareholders

The ____________ refers to the transactions in short-term debt instruments, which a maturity period of one year or less.

• capital market

• money market

•  marketable securities market

• financial instruments market

The term underwriting is borrowed from the field of insurance. It means that an investment banker _________________________________________ at a satisfactory price.

•  assumes a simple trading of shares

• assumes a profit-making trading of shares

•  assumes the risk of selling securities issued

• assumes a fair trading of shares

  
  

The first time a firm issues stock in public is referred to as a/an _____________________. This is what happened with Google on 19th August 2004, when it first sold its common stock to the public at USD85 per share and raised USD1.76 billion. When Google went back to the primary market in September 2005 and sold more Google stock, worth an additional USD4.18 billion, it was considered as a/ an _______________________________.

• seasoned equity offering (SEO) & primary market offering

  
  

• seasoned equity offering (SEO) & initial public offering (IPO)

• initial public offering (IPO) & primary market offering

  
  

• initial public offering (IPO) & seasoned equity offering (SEO)

The central bank of Malaysia is known as Bank Negara Malaysia (BNM) has a broad power of supervision and control over ________________ in Malaysia. Besides that, it also promotes monetary and financial stability for the country and the sustainable growth of the Malaysian economy.

• stock exchanges

• banking institutions

•  insurance firms

• securities firms

The new business may go directly to a wealthy private investor called a _____________________ for funds or it may go to a _____________________ for early funding.

• business angel & foreign investors

  
  

• venture capitalist & private investors

  
  

•  business angel & venture capitalist

• private investor & banker

  
  

Organized security exchanges are the formal organizations that facilitate the ___________________.

• trading of securities

• direct transfer of funds

• trading of bonds and debts

• resale of financial instruments 

The secondary market is where ________________ securities are traded.

• left over

• newly issued

• currently outstanding

• actioned