51. Who owns the NYSE?
A. NYSE members
B. specialists
C. dealers
D. floor brokers
E. shareholders
52. Which one of the following players on the floor of
the NYSE can be likened to part-time help because they are called to duty only
when others are fully employed?
A. floor trader
B. specialist
C. dealer
D. floor broker
E. commission broker
53. Which one of the following statements applies to
NASDAQ?
A. a partner with the London exchange
B. exchange floor is located in Chicago
C. single market maker for each listed security
D. broker’s market
E. comprised of three separate markets
54. You own 600 shares of a NASDAQ listed stock that
you wish to sell. Which of the following are options available to you for this
purpose?
I. sell the shares to a dealer at the dealer’s bid price
II. sell directly to another individual via an ECN
III. offer the shares yourself on NASDAQ via an ECN
IV. have a broker offer the shares for sale on the NYSE
A. I and II only
B. III and IV only
C. II and III only
D. I, II, and III only
E. II, III, and IV only
55. You are the sole shareholder of a small
corporation. Presently, you wish to diversify your holdings and thus want to
sell a portion of your shares but do not want to incur the costs associated
with SEC filings. Which one of the following markets, if any, might be
conducive to this sale?
A. NASDAQ
B. OTCBB
C. Pink Sheets
D. NYSE
E. None of the above
56. You are an accountant and have been analyzing the
financial statements of Euro Place Markets, which is a foreign retailer. While
the firm’s financials are not prepared according to GAAP, you have still been
able to understand the firm’s accounting practices and feel that this firm has
a bright future. On which one of the following U.S. markets, if any, might you
be able to purchase shares in this firm?
A. NYSE
B. NASDAQ
C. OTCBB
D. Pink Sheets
E. No U.S. market will list this foreign security.
57. Miller Brothers Hardware paid an annual dividend
of $1.15 per share last month. Today, the company announced that future
dividends will be increasing by 2.6 percent annually. If you require a 12
percent rate of return, how much are you willing to pay to purchase one share
of this stock today?
A. $12.23
B. $12.55
C. $12.67
D. $12.72
E. $12.88
58. Sessler Manufacturers made two announcements concerning
its common stock today. First, the company announced that the next annual
dividend will be $1.75 a share. Secondly, all dividends after that will
decrease by 1.5 percent annually. What is the maximum amount you should pay to
purchase a share of this stock today if you require a 14 percent rate of
return?
A. $11.29
B. $12.64
C. $13.27
D. $14.00
E. $14.21
59. How much are you willing to pay for one share of
Jumbo Trout stock if the company just paid a $0.70 annual dividend, the
dividends increase by 1.6 percent annually, and you require a 10 percent rate
of return?
A. $8.29
B. $8.33
C. $8.47
D. $8.53
E. $8.59
60. Free Motion Enterprises paid a $2.20 per share
annual dividend last week. Dividends are expected to increase by 3.75 percent
annually. What is one share of this stock worth to you today if your required
rate of return is 15 percent?
A. $19.06
B. $19.30
C. $19.56
D. $20.29
E. $20.59
