Understanding Financial Management and Securities Markets

What is the primary goal of the financial manager in a firm?

Which of the following is considered a key activity of a financial manager involving spending the firm’s funds in projects and securities?

What is the term for the financial concept that a higher potential for loss requires a greater required profit?

Which type of expenditures are outlays used to support a firm's current production and selling activities?

What is the process used by a financial manager to analyze long-term projects and select those that offer the best returns while maximizing the firm’s value?

Which of the following is NOT one of the three key strategies for managing the time between cash outflows and inflows?

What is the term for unsecured short-term debt, issued by a financially strong corporation, that serves as both an investment and a financing option?

Which of the following is NOT one of the main types of unsecured short-term loans?

What is the process where a firm sells its accounts receivable outright to a financial institution at a discount?

What is a major advantage of debt financing over equity financing?

Which type of long-term debt is made against real estate as collateral, allowing the lender to seize the property upon default?

A company's first sale of stock to the public is known as what?

What are profits that have been reinvested in the firm, which represent a source of equity capital without underwriting costs?

Which type of equity security usually has a fixed dividend amount and priority over common stockholders in payment of dividends and in case of bankruptcy?

What type of investors are investment professionals who are paid to manage other people’s money and often trade in large blocks of shares?

In which type of market are new securities sold to the public for the first time, with proceeds going to the issuer?

What is the main activity of an investment banker, which involves buying securities from a corporation and reselling them to the public?

According to the text, what was the estimated size of the global bond market?

What are high-risk, high-return bonds often used by companies whose credit characteristics would not otherwise allow them access to debt markets?

Which type of municipal bond is backed by the full faith and credit (and taxing power) of the issuing government?

What is a primary appeal of mutual funds for individual investors?

How do exchange-traded funds (ETFs) differ from mutual funds?

What is the key characteristic of options contracts that distinguishes them from futures contracts?

The New York Stock Exchange (NYSE) is an example of which type of market?

What system, commonly referred to as NASDAQ, is the largest electronic-based stock market linking dealers throughout the United States?

What type of market do the Over-the-Counter Bulletin Board (OTCBB) and the Pink Sheets represent?

What was the main purpose of the Securities Act of 1933?

The use of information that is not available to the general public to make profits on securities transactions is known as what?

What is the maximum insurance coverage per customer's account provided by the Securities Investor Protection Corporation (SIPC) if a brokerage firm fails?

What is the purpose of market-wide circuit breakers in the securities markets?

Which federal law, passed in 2002, was designed to address the lack of trust in corporate America by redefining the public corporation-auditor relationship and strengthening disclosure?

What has been a major trend in financial management since the passage of the Sarbanes-Oxley Act?

What is the term for a business loan with a maturity of more than one year, which can be secured or unsecured and typically ranges from 5 to 12 years?

What is the fixed amount of money that the issuer of a bond must pay the buyer on a regular schedule?

What is the primary characteristic of a revolving credit agreement that distinguishes it from a standard line of credit?

What do investment professionals, also known as account executives, who are licensed to buy and sell securities on behalf of clients call themselves?

Following a price war among online brokerages, what fee did Ameritrade and E*Trade reduce their online stock and exchange-traded fund trades to?

Which type of federal debt security matures in less than a year and is issued with a minimum par value of $1,000?

In the context of the dealer market, what is the term for dealers who make markets in one or more securities and offer to buy or sell at stated prices?

What are ECNs (electronic communications networks)?

What did the Securities Exchange Act of 1934 formally grant the SEC power to do?

Which organization, developed by the investment community for self-regulation, oversees brokerage firms and registered brokers in the United States?

What is the primary difference between a broker market and a dealer market?

What must the issuer of a security file with the SEC before a new security can be sold to the public?

SEC's Regulation FD (Fair Disclosure) requires public companies to do what?

Which two U.S. exchanges are described as being in a 'heated battle for supremacy' in the global securities markets?

According to the text, what action did the NYSE take to compete with NASDAQ's electronic platform?

Which of the following describes a long-term bond that is secured by property such as land or buildings?

What is the primary drawback of equity financing for a firm?

What are the investment certificates that represent either ownership in an organization or a loan to the issuer called?