Finance Ch 5

Hi-Tek Shoes is a private firm that has decided to issue shares of stock to the general public. This stock issue will be referred to as a(n): initial public offering
Which one of the following transactions occurs in the primary market? sale of newly issued shares by the issuer to a shareholder
After the trigger point is reached, a stop-loss order will be executed at the: market price
The process of purchasing newly issued shares from the issuer and reselling those shares to the general public is called: underwriting
You have the following information: You want the beginning price-weighted index of these two stocks to be 100. Given this, what is the ending index value? 107.02Beginning price-weighted index = [(35 + 22)/(35 + 22)] × 100 = 100Ending price-weighted index = [(38 + 23)/(35 + 22)] × 100 = 107.02
High Color Detergent is issuing new shares of stock which will trade on NASDAQ. If Sue purchases 300 of these shares, the trade will occur in which one of the following markets? primary
Faith placed an order to sell 7,500 shares of stock she currently owned. As soon as the order reached the trading floor, the shares were immediately sold. Which type of order did Faith place? market
The DJIA is an index of the stock prices of _____ firms. 30
The document that must be prepared in order to receive approval for a stock offering is called a: prospectus
When stocks are held in an index in proportion to their total company market value, the index is: value-weighted

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