1. Question: What is the primary risk with short selling?

    A
    Other brokers see your transactions and try to profit as well.

    B
    The stock price never goes down, and the broker calls on the trader to pay for the security.

    C
    It is illegal.

    D
    Taxes on short sale transactions are higher.

    Note: Answer not sure
    1. Report
  2. Question: What is "after hours trading"?

    A
    Trading on foreign exchanges

    B
    Setting limit orders which will be executed after market hours

    C
    Trading in currency transactions

    D
    Trading in stocks after the market has closed, creating orders which will be executed the following day

    Note: Answer not sure
    1. Report
  3. Question: What is another name for arbitrage trading?

    A
    Day Trading

    B
    Short Selling

    C
    Scalping

    D
    Profiting

    Note: Answer not sure
    1. Report
  4. Question: Return on Assets is defined as _______.

    A
    Net Income/Current Assets

    B
    Net Income/Total Assets

    C
    Gross Margin/Current Assets

    D
    Gross Margin/Total Assets

    Note: Not available
    1. Report
  5. Question: Why would a company calculate their Risk Adjusted Return on Capital?

    A
    Is required by the SEC

    B
    Auditors will overlook other abnormalities if a firm demonstrates a favorable RAROC

    C
    Gives companies the ability to allocate capital in the optimal structure

    D
    Keeps the financial analysis department busy

    Note: Not available
    1. Report
  6. Question: What is the purpose of measuring profitability?

    A
    To determine the amount of cash a company brings in on an average in a month

    B
    To analyze specific expenses to look for cost cutting measures

    C
    To measure a company's ability to earn a profit and continue to grow in the short-term and long-term

    D
    To measure a company's ability to pay the highest dividend relative to its competitors

    Note: Not available
    1. Report
  7. Question: Operating Efficiency is defined as ______.

    A
    Net Income/Operating Expenses

    B
    Gross Profit/Operating Expenses

    C
    Gross Profit/Sales

    D
    Net Income/Sales

    Note: Not available
    1. Report
  8. Question: To measure a firm's solvency as completely as possible, we need to consider ______.

    A
    the firm's relative proportion of debt and equity in its capital structure

    B
    the firm's capital structure and the liquidity of its current assets

    C
    the firm's ability to use Net Working Capital to pay off its current liabilities

    D
    the firm's leverage and its ability to make interest payments on its long-term debt

    E
    the firm's leverage and its ability to turn its assets into sales

    Note: Not available
    1. Report
  9. Question: How does Gross Income differ from Net Income?

    A
    Gross Income determines the company's cash flow, Net Income does not

    B
    Gross Income includes several fixed costs, Net Income does not

    C
    Gross Income includes all fixed costs, Net Income does not include any

    D
    Gross Income measures profitability before operating expenses, whereas Net Income is calculated after all operating expenses

    Note: Not available
    1. Report
  10. Question: Which of the following are traded in the capital markets?

    A
    Convertible securities

    B
    Bonds

    C
    Common stock

    D
    Preferred stock

    E
    All of these

    Note: Not available
    1. Report
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