1) Build American bonds are not exempt from federal income taxation.
2) Convertible preferred stock is usually less risky to investors than the firm’s
convertible bonds.
3) A shelf-registration involves the selling of new securities without having them
registered with the SEC.
4) A small firm may offer a Roth IRA instead of a 401(k).
5) A revenue bond is supported by the taxation authority of the issuing government.
6) If the price of an initial public offering of stock
rises, the windfall gain goes to the underwriter.
7) Series EE bonds were designed to tap the funds of savers with modest sums to invest.
8) The dividendgrowth model requires that dividends grow annually at the same rate.
9) Sarbanes-Oxley created the Public Company Accounting Oversight Board whose
task is to regulate securities prices.
10) Preferred stock is legally equity and represents
ownership.
11) Interest on a convertible bond may be exchanged for stock instead of cash.
12) CFA is a professional designation for individuals seeking positions as portfolio
managers.
13) The level of securities prices is set by market makers.
14) Behavior financial suggests that investors may fail to sell losing positions since
these investors feel the pain of regret.
15) The quick ratio is a better measure of liquidity than
the current ratio for manufacturers.
16) American investors may acquire shares in mutual funds that specialize in foreign
investments.
17) Empirical studies of returns earned by mutual funds suggest they consistently
outperform the market.