Economic Factors and Business Information Quiz
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Questions and Answers

What is the main characteristic of preferred stock compared to common stock?

  • Greater voting rights
  • Lower dividend payments
  • More volatility
  • Higher liquidation preference (correct)
  • Which type of securities are known for their tax advantages and are usually issued by state or local governments?

  • Treasury bills
  • Corporate bonds
  • Foreign-issued bonds
  • Municipal bonds (correct)
  • What feature of fixed income securities refers to the amount investors will receive if the issuer goes bankrupt?

  • Coupon rate
  • Yield to maturity
  • Market liquidity
  • Liquidation preference (correct)
  • Which valuation factor of fixed income securities considers the time it will take to receive all promised cash flows?

    <p>Duration</p> Signup and view all the answers

    What type of equity securities are known for having first claim on dividends and assets in case of liquidation?

    <p>Convertible preferred stock</p> Signup and view all the answers

    In an Equity Public Offering, what is the primary purpose of a secondary offering?

    <p>To raise new capital after the IPO</p> Signup and view all the answers

    Which economic indicator measures the inflation rate in an economy?

    <p>Consumer Price Index (CPI)</p> Signup and view all the answers

    What does the quick ratio primarily measure in a company?

    <p>Liquidity</p> Signup and view all the answers

    Which financial statement provides a snapshot of a company's financial position at a specific point in time?

    <p>Balance sheet</p> Signup and view all the answers

    What does the net present value (NPV) calculation primarily evaluate?

    <p>Project profitability</p> Signup and view all the answers

    What type of risk is associated with interest rate fluctuations affecting all investments in the market?

    <p>Systematic risk</p> Signup and view all the answers

    Which financial ratio is used to assess a company's long-term financial stability in relation to its debt obligations?

    <p>Debt-to-equity ratio</p> Signup and view all the answers

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