Investments Analysis and Behavior M: 7019944355

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Investments Analysis and Behavior

Multiple Choices:

1. Which one of the following is the world’s first electronic stock market?
a. American Stock Exchange
b. Nasdaq National Market
c. Bombay stock Exchange
d. New York stock Exchange

2. The highest price that market maker is willing to pay to buy a security, is referred as:
a. Bid
b. Ask
c. Bid Size
d. Ask Size

3. IPOs stands for ________.
a. Indian Premier Offerings
b. Initial Public Offerings
c. Initial Premier Offerings
d. Initial Private Offerings

4. Under the securities act of ______, when a company makes a public offering, it must file a
registration statement with the SEC.
a. 1934
b. 1936
c. 1935
d. 1933

5. It is the chance of loss in the value of fixed- income investment following a rise in interest rates.
a. Risk
b. Credit Risk
c. Interest Rate Risk
d. Expected Return

6. Extreme changes in financial asset values tied to changing economic fundamentals are defined
as______.
a. Irrational Bubbles
b. Rational Bubbles
c. Market bubbles
d. None of the above

7. Rhythmic pattern of contraction and expansion in the overall economy is referred as ______.
a. Contraction
b. Expansion
c. Business Cycle
d. Recession

8. A measure that assesses what others are doing and suggests you should do the opposite, is:
a. Odd lot Indicators
b. Contrary Indicators
c. Mutual fund flow Indicators
d. Brokerage account credit balance indicators

9. Individuals and Institutions that purchase bonds for interest income and long term capital gains
are:
a. Primary Bond Market
b. Bond Dealers
c. Bond Investors
d. Bond Issuers

10. Funds that charge sales feels ranging from One to three percent, are called:
a. Low-Load Funds
b. No-Load Funds
c. Exchange Fee
d. Back- End Load

Part Two:

1. Write a short note on ‘New York Stock Exchange’.
2. What do you understand by ‘Micro Cap Fraud”?
3. Explain the term ‘Treasury Bonds’.
4. Explain the meaning of ‘Mutual Fund’ and its advantages.

1. What do you think are the flaws in the public issue of Hughes Software? Enumerate them.
2. Can you construct a model for IPO process, which can help in price discovery in setting the price at the IPO?

1. What are the unique features of ADRs that attract Indian companies to list on NASDAQ or NYSE?
2. What is unsponsored ADR? Why did it become obsolete?

1. Discuss the concept of Macroeconomics environment. What are the major forces that drive the economy?
2. Explain the following terms:
a. Capital Market Line
b. Security Market Line


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