12 Questions
What is the main characteristic of preferred stock compared to common stock?
Higher liquidation preference
Which type of securities are known for their tax advantages and are usually issued by state or local governments?
Municipal bonds
What feature of fixed income securities refers to the amount investors will receive if the issuer goes bankrupt?
Liquidation preference
Which valuation factor of fixed income securities considers the time it will take to receive all promised cash flows?
Duration
What type of equity securities are known for having first claim on dividends and assets in case of liquidation?
Convertible preferred stock
In an Equity Public Offering, what is the primary purpose of a secondary offering?
To raise new capital after the IPO
Which economic indicator measures the inflation rate in an economy?
Consumer Price Index (CPI)
What does the quick ratio primarily measure in a company?
Liquidity
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Balance sheet
What does the net present value (NPV) calculation primarily evaluate?
Project profitability
What type of risk is associated with interest rate fluctuations affecting all investments in the market?
Systematic risk
Which financial ratio is used to assess a company's long-term financial stability in relation to its debt obligations?
Debt-to-equity ratio
Test your knowledge on economic factors and business information including business cycles, monetary policies, global factors, inflation, interest rates, financial reporting, and more.
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