Question 32 of 50

Which type of equity security typically provides the holder with voting rights?

Under which voting system are minority shareholders better able to elect a board member?

If an investor holds 100 shares and there are 3 board seats open, how many votes can they cast for a single candidate under statutory voting?

Which feature allows a firm to repurchase its own shares from investors at a pre-specified price?

From an investor's perspective, which type of common share is generally considered the riskiest?

Which characteristic best describes preference shares?

What happens to unpaid dividends on cumulative preference shares?

Which type of preference share allows investors to receive extra dividends if firm profits exceed a specified level?

Compared to public equity, private equity is characterized by:

Which of the following is a type of private equity investment focused on mature companies with established cash flows?

Private Investment in Public Equity (PIPE) refers to:

Which of the following represents ownership in a foreign firm and is traded in the markets of other countries in local market currencies?

American Depository Receipts (ADRs) are denominated in which currency?

Which type of Depository Receipt is issued outside both the US and the issuer's home country?

Which level of ADR listing allows a company to raise capital on a US exchange?

What is a primary requirement for a Level 2 ADR compared to a Level 1 ADR?

Rule 144A ADRs are unique because they:

Which equity security is actually an ETF that consists of a collection of Depository Receipts?

In a sponsored Depository Receipt, who retains the voting rights?

Which of the following creates the 'Foreign Exchange' component of equity return for an international investor?

Which of the following securities has the lowest risk for an investor?

If a company has a Return on Equity (ROE) of 12 percent and the Cost of Equity (Ke) is 10 percent, management is:

Book value of equity is defined as:

The market value of equity reflects:

Which ratio is commonly used to compare the market's valuation of a firm relative to its accounting value?

An investor buys a stock for 50 dollars. One year later, the price is 55 dollars and they received a 2 dollar dividend. What is the total return?

Cost of Equity is best described as:

Which method is commonly used to estimate the Cost of Equity?

The standard deviation of equity returns is used to measure:

Which of the following describes 'Integrated Markets' in the context of foreign investing?

If a US investor holds a European stock that gains 5 percent in Euros, but the Euro depreciates 5 percent against the Dollar, the investor's return is approximately:

Which is a benefit of listing on a foreign stock exchange?

Venture Capital is most suitable for companies that are:

Which characteristic makes public equity more efficient than private equity?

In the event of liquidation, which claim has the lowest priority?

What is the primary role of equity securities in the financing of a company's assets?

Which of the following is true regarding 'Unsponsored' Depository Receipts?

If a company uses 'Statutory Voting', a shareholder with 50 shares electing 4 directors can cast a maximum of how many votes for one specific director?

Convertible preference shares are attractive to investors because:

A 'Level 1' ADR program typically trades:

Net Income divided by Average Equity calculates which metric?

Which statement about common stock dividends is correct?

Why might a company issue non-voting preference shares?

What is the main disadvantage of a Direct Investment in foreign stocks compared to DRs?

If investors perceive a company's risk has increased, what will likely happen to the Cost of Equity?

Which factor would most likely cause a company's Market Value to be significantly higher than its Book Value?

Non-participating preference shares receive:

Which term describes equity securities that are not listed on public exchanges?

A key advantage of Global Registered Shares (GRS) over ADRs is: