To list on the nyse a firm must a have at least 2000

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19) To list on the NYSE, a firm must A) have at least 2000 stockholders, each owning 100 shares or more. B) have pretax earnings of at least $1 million per year. C) have a total of $100 million in market value of publicly traded shares. D) meet all of the above requirements. E) meet (A) and (B) of the above requirements. Answer: E Securities not listed on one of the exchanges trade in the over-the-counter market. In this exchange, dealers “make a market” by F) buying stocks for inventory when investors want to sell. G) selling stocks from inventory when investors want to buy. H) doing both of the above. I) doing neither of the above. Answer: C 20) (I) Capital market securities fall into two categories: bonds and stocks. (II) Long- term bonds include government bonds and long-term notes, municipal bonds, and corporate bonds. 21) The _____ value of a bond is the amount that the issuer must pay at maturity. 122
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22) The _____ rate is the rate of interest that the issuer must pay. 23) (I) The coupon rate is the rate of interest that the issuer of the bond must pay. (II) The coupon rate is usually fixed for the duration of the bond and does not fluctuate with market interest rates. A) (I) is true, (II) false. B) (I) is false, (II) true. C) Both are true. D) Both are false. Answer: C 24) Federal government bonds are subject to _____ risk but are free of _____ risk. 25) The prices of Treasury notes, bonds, and bills are quoted as a percentage of 26) (I) To sell an old bond when interest rates have risen, the holder will have to discount the bond until the yield to the buyer is the same as the market rate. (II) The risk that the value of a bond will fall when market interest rates rise is called interest rate risk. 27) To sell an old bond when interest rates have _____, the holder will have to ______ the price of the bond until the yield to the buyer is the same as the market rate. A) risen; lower B) risen; raise C) fallen; lower D) risen; inflate Answer: A 123
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