1) An increase in retained earnings will increase the debt to equity ratio.
2) If a stock meets a resistance level and penetrates that level, the implication is avoid
the stock.
3) The future value of an ordinary annuity will exceed
the future value of an annuity due.
4) The purchase of 53 shares of IBM is an odd lot.
5) One of the first steps an investor should take is to establish the goals of the portfolio.
6) Behavior finance explains dramatic price changes in securities markets as a tendency
for investors to herd.
7) The Futures Trading Commission enforces the federal laws regulating commodity
transactions.
8) A major advantage associated with dividend reinvestment plans is forced saving.
9) The premium paid over a convertible bond’s value as debt tends to decline as the
price of the stock rises.
10) If the price of a stock rises, the writer of a put option profits.
11) U.S. securities markets are efficient in part because these markets are very
competitive.
12) The writer of a covered call cannot lose money if the price of the stock rises.
13) One advantage to the issuing firm of a split coupon bond is that cash is initially
conserved.
14) The term of an extendible bond is known with certainty.