BAF (Bachelor of Accounting & Finance) Securities Markets — practice questions
44 free MCQs with worked solutions. Tap any question for the answer + explanation, or practice them all in the app.
Practice BAF (Bachelor of Accounting & Finance) Securities Markets in the app →The art and science of managing a firm's money so that it can meet its goals is:Making sure the firm has cash on hand to pay bills as they come due is:Short-term investments that can be turned into cash easily are called:A firm sells its accounts receivable outright at a discount to raise money quickly. This is:A bank tells a firm the most it may borrow unsecured over the coming year. That agreement is a:A guaranteed version of that arrangement, where the bank commits the funds will be available, is a:A financially strong corporation issues an unsecured short-term IOU. That instrument is:Credit a seller gives a buyer between delivery and payment is called:A business loan with a maturity longer than one year is a:A long-term loan made against real estate as collateral is a:Analysing long-term projects and picking those with the best returns is:Investments in land, buildings and machinery expected to serve beyond a year are:The chance that a firm cannot make scheduled interest and principal payments on its debt is:The principle that a higher risk should bring the chance of a greater return is the:A security representing an ownership interest in a corporation is:An equity security whose dividend is fixed when it is issued is:Payments made to stockholders out of a corporation's profits are:The amount borrowed by the issuer of a bond, also called par value, is the:Bonds issued by states, cities and counties are called:New securities are sold to the public for the first time in the:Already-issued securities are bought and sold between investors in the:A firm that pools investors' money to buy a selection of securities is a:A share trading at 24 with earnings per share of 4 has a price to earnings ratio of:That ratio of 6 means investors are willing to pay how much for each unit of earnings?A share trading at 50 with earnings per share of 5 has a ratio of:A share trading at 90 with earnings per share of 6 has a ratio of:A ratio worked out with actual past earnings is described as a:A ratio built on projected future earnings is described as a:A common interpretation is that firms with high price to earnings ratios should be:By the same argument, stocks with low ratios should be:Analysing one company's ratio in isolation tells an analyst:The ratio comparing a company's market value with its book value is the:The multiple comparing market value with operating cash flow is the:The equity multiple used mainly when comparing cash returns across investment types is:The most common equity multiple in stock valuation, because it is simple to calculate, is the:A measurement of the total value of a company, used in merger decisions, is:Equity that offers preferential claims in ownership is:Unlike bonds, preferred stock has no:The word preferred refers to those shareholders receiving dividends before:Many firms issue preferred stock that can later be exchanged for ordinary shares. That is a:The steady dividend on preferred stock makes it seem more like:Because that dividend stream is constant, preferred stock is well valued using the:The three forms of market efficiency identified are strong, semi-strong and:In the weakest of those forms, prices already reflect all: