11 Questions
What is the primary purpose of companies issuing stocks?
To raise capital to finance their business
What is the term used to differentiate trading stocks from stock futures, options, and other derivatives?
Cash Equities
What is the benefit of the 'corporate concept' to private individuals?
It allows them to pool their resources together for mutual benefit and profit
What is the definition of equities in the context of finance?
Fractional ownership in a company
In the context of stocks, what is the difference between 'stocks' and 'common stock'?
Common stock is a type of stock that is not preferred stock
What is the primary benefit of stocks compared to bonds?
Higher 'upside' potential
What is the name of the court case that established the concept of corporate personhood in the United States?
Citizens United v. Federal Election Commission
What is the primary goal of a company filing for Chapter 11 bankruptcy?
To restructure debts and continue operations
What is the name of the Dutch company that was established in 1602 and granted a monopoly on Dutch trade with Asia?
Dutch East India Company
What is the primary benefit of limited liability for shareholders?
Protection from personal financial losses
What is the name of the stage of corporate funding where a company raises capital from friends and family?
Angel Investing
Learn the basics of stocks and equities, including terminology, core concepts, funding models, and common terms. Discover how companies raise capital through stock and understand the concept of fractional ownership. This quiz covers the introductory topics of Financial Engineering, specifically IE420 Lecture 04.
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