FIN 351 TEXT QUIZ CHAPTER 10

61 Studies have shown that the best time to sell an unseasoned issue is
A Prior to announcement of a merger
B. Shortly after the initial distribution
C. After one year of trading
D. More than one of the above
62. Besides management and prior performance, what primary factors should be considered by the investor
in a new issue?
A. The intended use of funds from the issue
B. Expected stock price in the secondary market
C. The investment banker handling the distribution
D. More than one of the above
63. Which of the following is NOT an advantage of listing a stock on an exchange?
A. A market for the stock is maintained by a specialist
B. Minimum size and performance criteria for listing are quite restrictive
C. There is usually a significant increase in stock price upon approval for listing
D. More than one of the above
64. When should an investor in OTC stock approved for listing sell the stock, if the objective is to maximize
profit?
A. Immediately prior to approval
B. When the approval is published
C. On the date of listing
D. Four to six weeks after the date of listing
65. All of the following are minimum listing requirement for a New York Stock Exchange listing except
A. Market value of publicly held shares at least $100 million
B. At least 2,000 round lot holders
C. At least 1,200 employees
D. A total of at least 1,100,000 shares held publicly