37 Free Test Bank for Fundamentals of Investment Management 10th Edition Hirt

Going to 37 Free Test Bank for Fundamentals of Investment Management 10th Edition Hirt multiple choice questions to practice and learn the concepts and real life examples with the key topic such as Chapter 1: The Investment Setting; Chapter 2: Security Markets; Chapter 3: Participating in the Market; Chapter 4: Investment Companies: Mutual Funds, Exchange-Traded Funds, Closed-End Funds, and Unit Investment Trusts; Chapter 5: Economic Activity; Chapter 6: Industry Analysis; Chapter 7: Valuation of the Individual Firm; Chapter 8: Financial Statement Analysis; Chapter 9: Efficient Markets and Anomalies; Chapter 10: Behavioral Finance and Technical Analysis; Chapter 11: Bond and Fixed-Income Fundamentals; Chapter 12: Principles of Bond Valuation and Investment; Chapter 13: Convertible Securities and Warrants; Chapter 14: Put and Call Options; Chapter 15: Commodities and Financial Futures; Chapter 16: Stock Index Futures and Options; Chapter 17: A Basic Look at Portfolio Management and Capital Market Theory; Chapter 18: Duration and Bond Portfolio Management; Chapter 19: International Securities Markets; Chapter 20: Investments in Real Assets; Chapter 21: Alternative Investments: Private Equity and Hedge Funds; Chapter 22: Measuring Risks and Returns of Portfolio Managers. There are free text investment management test bank questions that you can check your knowledge to know what you should practice more to prepare for your coming exam. Here, test bank is an online homework for 100% free, let’s take it to get fully understanding of this textbook.

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Program trading

•  A. means that when a given market indicator reaches a certain point, a large sale or purchase of securities may take place.
•  B. has been argued to affect the market by accelerating price movements.
•  C. is likely to be voluntarily restricted by the securities exchanges and their member firms.
•  D. All of the above

An employee of an investment house who executes orders on the floor of the exchange for customers of the firm is called a:

•  A. floor broker.
•  B. registered trader.
•  C. commission broker.
•  D. specialist.
•  E. dealer.

Initial and annual listing fees are highest for _______________ -listed stocks.

•  A. Chicago Mercantile Exchange
•  B. ECN
•  C. NASDAQ Stock market
•  D. New York Stock Exchange
•  E. American Stock Exchange

A syndicate is formed to:

•  A. share the risk between investment bankers.
•  B. distribute securities to a wide group of investors.
•  C. improve the liquidity/marketability of an offering.
•  D. All of the above

From the investment banker's point of view, the major reason syndicates are formed in the distribution of large issues is for the purpose of:

•  A. improving the liquidity of the issue.
•  B. improving geographic distribution.
•  C. reducing the underwriter's risk.
•  D. improving brand recognition.
•  E. All of the above

The accounting frauds and scandals that took place during the stock market boom of the late 1990s resulted in what significant Act?

•  A. Sarbanes-Oxley Act
•  B. Gramm-Leach Bliley Act
•  C. Glass-Steagall Act
•  D. Honesty in Financial Reporting Act
•  E. Securities Exchange Act

Electronic communication systems:

•  A. allow investors to communicate with others in investor chat rooms.
•  B. allow markets to trade American Depository Receipts online in Europe and Asia.
•  C. automatically match buy and sell orders at specified prices.
•  D. are operated by the investment bankers to stabilize new issue markets.

A means of exchanging assets, which may or may not include a specified location, and in which the seller may or may not own the assets being sold, is called:

•  A. an organized exchange.
•  B. an options market.
•  C. a market.
•  D. None of the above

The process of selling a new issue of securities so that the price is guaranteed to the selling firm is referred to as:

•  A. underwriting.
•  B. best efforts.
•  C. direct by issuer.
•  D. shelf registration.
•  E. All of the above involve a price guarantee

Full disclosure of all pertinent investment information in the sale of new securities is a provision of the:

•  A. Securities Act of 1933.
•  B. Securities Exchange Act of 1934.
•  C. Securities Acts Amendments of 1975.
•  D. Sarbanes-Oxley Act of 2002.
•  E. More than one of the above

Which of the following is NOT a characteristic of an organized exchange?

•  A. It functions as a primary market
•  B. Securities are bought and sold in an auction market by brokers acting as agents for buyers and sellers in a central location
•  C. It may be either national or regional
•  D. It has a central location where all trading takes place
•  E. It functions as a secondary market

The Sarbanes-Oxley Act:

•  A. has reduced the number of foreign companies willing to list their shares on U.S. exchanges.
•  B. was enacted under the Securities Exchange Act of 1934.
•  C. reduces the reporting requirements for publicly traded firms.
•  D. has made it possible for small firms to list their shares in the public markets.
•  E. was the loophole that enabled corporate executives to misrepresent their financial statements during the late 1990s and early 2000s.

In the __________ market, existing assets are exchanged between investors, while in the ___________ market, participants buy their assets directly from the source of the asset.

•  A. primary; secondary
•  B. secondary; primary
•  C. tertiary; primary
•  D. primary; OTC
•  E. prime; subprime

A house broker is one who:

•  A. is registered to trade on the exchange but is not an employee of a member firm.
•  B. is not associated with a member firm.
•  C. represents a retail brokerage firm and transacts business on the floor for customers of that firm.
•  D. transacts orders for individuals buying or selling less than 100 shares.

The major exchange for warrants, options, and commodity futures is the:

•  A. American Stock Exchange.
•  B. New York Stock Exchange.
•  C. NASDAQ.
•  D. None of the above

The Securities Investor Protection Corporation (SIPC) was established to:

•  A. oversee the liquidation of brokerage firms, and insure an investor's accounts to a maximum value of $500,000 in case of bankruptcy by the broker.
•  B. protect investors from corporate insider trading, and insure their accounts for $500,000 in case corporate fraud caused a company to go bankrupt.
•  C. cover the total market loss on an investor's brokerage account in case of the bankruptcy of the broker.
•  D. create an insurance pool for brokerage firms, so that if one firm went bankrupt, all investor losses would be covered out of the insurance pool.

The investment banker is responsible for everything except:

•  A. underwriting an issue of securities.
•  B. being the leader and a part of the syndicate of large issues, providing that one is formed.
•  C. the distribution process of a security issue.
•  D. selling an agreed-upon number of bonds and stocks.

Creating prices for securities and allowing for liquidity are functions of:

•  A. the primary market.
•  B. the secondary market.
•  C. the third market.
•  D. the fourth market.
•  E. the real estate market.

The __________ is a futures market for common stock, while the ____________ is a futures market for commodities and financial instruments.

•  A. Chicago Board Options Exchange; Chicago Mercantile Exchange
•  B. Chicago Mercantile Exchange; Chicago Board Options Exchange
•  C. Chicago Board of Trade; Chicago Board Options Exchange
•  D. New York Stock Exchange; American Stock Exchange

Which of the following best describes the function of an investment banker selling an issue on a "best efforts" basis?

•  A. Return unsold securities to the firm
•  B. Create a market for the securities
•  C. Guarantee a continuous liquid market
•  D. Private placements to financial institutions
•  E. More than one of the above

In general, markets are efficient when:

•  A. prices respond quickly to new information.
•  B. each successive trade is made at a price close to the preceding price.
•  C. they can absorb large amounts of securities or assets without changing the price significantly.
•  D. All of the above

Dual trading creates the following benefit:

•  A. it improves liquidity of a security.
•  B. it allows securities to be traded domestically and internationally.
•  C. it creates competition between the exchange and NASDAQ.
•  D. All of the above are benefits of dual trading

Bringing private companies public for the first time is called:

•  A. a private placement.
•  B. an initial public offering (IPO).
•  C. a secondary offering.
•  D. a founders sale.
•  E. a shelf registration.

The Securities and Exchange Commission was created by the:

•  A. Securities Act of 1933.
•  B. Securities Exchange Act of 1934.
•  C. Investment Advisor Act of 1940.
•  D. None of the above

The first exchange to become a publicly traded company was the:

•  A. New York Stock Exchange.
•  B. Chicago Board of Trade.
•  C. NASDAQ Stock Market.
•  D. American Stock Exchange.
•  E. Chicago Mercantile Exchange.

A person who is registered to trade on an exchange, who owns a seat but is not an employee of any member firm is a:

•  A. commission broker.
•  B. floor broker.
•  C. registered trader.
•  D. dealer.
•  E. B and C

One of the functions of a specialist is:

•  A. to manipulate price continuity.
•  B. to change quotation spreads.
•  C. to measure market depth as needed.
•  D. to execute special orders for floor brokers.