Finance Quiz: Investment Terminology

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Questions and Answers

What is the term used to describe the highest price a buyer is willing to pay for a share of stock?

  • Retail price
  • Ask price
  • Wholesale price
  • Bid price (correct)

Which term refers to the lowest price that a seller is willing to offer for sale for a share of stock?

  • Ask price
  • Bid price (correct)
  • Wholesale price
  • Retail price

What type of companies are able to meet stringent listing and reportorial requirements and have shares traded in the Philippine Stock Exchange?

  • Public corporation
  • Non-stock corporation
  • Stock corporation
  • Publicly listed companies (correct)

What does the abbreviation IPO stand for in the context of raising capital by offering shares to the public?

<p>IPO (A)</p> Signup and view all the answers

Which term describes a process where a privately held corporation sells its shares for the first time to raise capital?

<p>IPO (B)</p> Signup and view all the answers

What is a group of investments called?

<p>Portfolio (A)</p> Signup and view all the answers

In which market are newly issued securities sold by their issuers?

<p>Primary Market (A)</p> Signup and view all the answers

Which theory relates risk and expected return of investments in a capital market?

<p>CAPM (B)</p> Signup and view all the answers

What is a mathematical formulation that aims for lower risk through diversification?

<p>Modern Portfolio Theory (A)</p> Signup and view all the answers

Which type of asset has returns with zero variance?

<p>Risk-free Asset (D)</p> Signup and view all the answers

In which market do security prices rapidly reflect all available information?

<p>Efficient Capital Market (B)</p> Signup and view all the answers

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