Question Details

Which one has nothing to do with IPO 



1.	 Cook, Inc. has a current ratio of 1.8x on current liabilities of $200,000. The firm has $36,000 of inventories. The firm will issue notes payable and use those funds to buy new inventories to meet the inventory requirement for the expansion. Cook- debt holders specifies that it must maintain a quick ratio at least 1.20x, or else it is in default. How much new inventory can Cook raise before it violates its bond contracts?
a.     $70,000        
b.     $80,000        
c.     $90,000        
d.     $72,000        
e.     $30,000
2.	Money markets are markets for
a.	Foreign currencies.
b.	Consumer automobile loans.
c.	Common stocks.
d.	Long-term bonds.
e.	Short-term debt securities such as Treasury bills and commercial paper.
3.	Which of the following statements is CORRECT?
a.	If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction.
b.	If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction.
c.	The NYSE is an example of an over-the-counter market.
d.	Only institutions, and not individuals, can engage in derivative market transactions.
e.	As they are generally defined, money market transactions involve debt securities with maturities of less than one year.
4.	 Which one has nothing to do with IPO ? 
    	a.     New issues   
b.     Secondary market   
c.     An influx of capital to issuer
    	d.     Investment Banks possibly underwriting   
e.     Public offering
5.	Which of the following statements is CORRECT?
a.	The most important difference between spot markets versus futures markets is the maturity of the instruments that are traded.  Spot market transactions involve securities that have maturities of less than one year whereas futures markets transactions involve securities with maturities greater than one year.
b.	Capital market transactions involve only preferred stock or common stock.
c.	If General Electric were to issue new stock this year, this would be considered a secondary market transaction since the company already has stock outstanding.
d.	Both Nasdaq dealers and "specialists" on the NYSE hold inventories of stocks.
e.	Money market transactions do not involve securities denominated in currencies other than the U.S. dollar.




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