Shorting the market - Study guides, Class notes & Summaries

Your firm is the managing underwriter of an initial public offering. How many days must the firm's research analyst wait before issuing a research report on this IPO? A. There is no waiting period and research may begin anytime after the effective date B. Three days C. 10 days D. 25 days - Answer- C. 10 days If a firm is involved in an underwriting of an initial public offering and is the manager or comanager, it must maintain a quiet period of 10 days following an IPO or three days follow...

What are the 3 sub-specialties within finance? - correct answer - Corporate finance - Investments - Institutions Corporate finance - correct answer - Goal is to maximize shareholder wealth for publicly traded forms or to maximize owner wealth for privately held companies - A financial manager works towards this goal by managing the investing and financing functions of a firm Investments - correct answer ...

Contrast historical and implied volatility when used in price analysis and forecasting - Answer Implied volatility is the expected price movement of the underlying stock - Historical Volatility is simply the historical volatility.. List the inputs to an option pricing model - Answer - Call/Put - Underlying Price - Strike Price - Implied Volatility - Days to Expiration - Interest rate - Dividends Calculated single-day implied volatility - Answer 1 Day Movement = Implied Volatility/Sq...

INTERNATIONAL BUSINESS CHAPTER 10 EXAM | QUESTIONS & ANSWERS (VERIFIED) | LATEST UPDATE | GRADED A+ Foreign Exchange Risk Correct Answer: The adverse consequences of unpredictable changes in exchange rates that can affect business deals. For example, major inflation/deflation Exchange Rate Correct Answer: The rate at which one currency is converted into another. Exchange rates are explained through the value of another currency Strongest World Currencies Correct Answer: US Dollar...

CFA Alternative Investments. Questions with accurate answers. Graded A+ Document Content and Description Below CFA Alternative Investments. Questions with accurate answers. Graded A+ What is a payoff equivalent of a merger strategy? - A typical merger strategy involved longing the target company and shorting the acquirer, with the net spread representing the payoff if merger is successful. If the merger fails, the prices revert to what they were prior to merger announcement, and the strategy e...

A registered rep purchases two tickets to a college football game with the intention of taking a client to the game. The tickets are worth $75 each, but because rep is a former football player and part of the college's alumni association, he gets them for free. The day before the game, the rep is called out of town on a family emergency and cannot attend the game. Which of the following is true? - ANSWER-The rep cannot give both tickets to the client because the combined face value is more than...

A registered principal or registered representative must retake the qualifying exam if his or her registration has been revoked or terminated for a period of ____________ or more. A.) 1 year B.) 5 years C.) 3 years D.) 2 years - ANSWER-D.) 2 Years A member may maintain a representative registration for which of the following persons?I. A person who performs legal, compliance, or internal audit functions for the memberII. A person who performs back-office functions for the memberIII. A per...

A registered principal or registered representative must retake the qualifying exam if his or her registration has been revoked or terminated for a period of ____________ or more. A.) 1 year B.) 5 years C.) 3 years D.) 2 years - ANSWER-D.) 2 Years A member may maintain a representative registration for which of the following persons?I. A person who performs legal, compliance, or internal audit functions for the memberII. A person who performs back-office functions for the memberIII. A per...

AWMA Test Review 1 Questions with Correct Answers If ABC Corporation has net profits of $100,000 and distributes $50,000 as dividends, what is its taxable income? A. $0 B. $25,000 C. $50,000 D. $100,000 - Answer-The net profits of a corporation are subject to federal income taxation. This tax is levied on corporate taxable income before payment of dividends to common and preferred shareholders. Thus, if ABC Corporation has net profits of $100,000 and distributes $50,000 as dividends,...

STRIPS may be attractive to investors for which of the following reasons? A. They offer semi-annual interest payments B. The securities are tax-free until they mature C. They carry almost no reinvestment risk D. They are offered at only a 20 year maturity which is a maturity that is not offered by traditional Treasury securities - ANSWER-C. They carry almost no reinvestment risk The Alternative Minimum Tax (AMT): A. Adds back in certain "tax preference items" that are deducted for ...