FINA 3315 Exam 1 Review 2025
Questions and Answers 100% Pass
Stocks are a(n) ________ investment representing ________ of a business. - ✔✔Direct;
Ownership
The government is generally - ✔✔A demander of funds in the financial market.
Alexandra purchased a stock one year ago at a price of $64 a share. In the past year, she
has received four quarterly dividends of $1.50 each. Today she sold the stock for $76 a
share. Her capital gain per share is - ✔✔$12
A major goal of corporate financial management is to increase the value of the firm to
investors. - ✔✔True
The governmental agency that oversees the capital markets is the - ✔✔Securities and
Exchange Commission.
Stocks purchased in the secondary market are purchased - ✔✔From other investors.
The great majority of transactions on the NYSE are executed - ✔✔Automatically
through electronic technology.
Which of the following is currently a requirement for a stock to be listed on the NYSE? -
✔✔Global market capitalization of at least $200 million.
Margin trading will magnify losses on a percentage basis. - ✔✔True
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 1
, An investor short sells 500 shares of a stock for $35 per share. The initial margin is 52%.
How much equity will be required in the account to complete this transaction? - ✔✔(500
x $35) x .52 = $9100
Which of these alternatives is NOT an option available to companies offering their stock
to the public for the first time? - ✔✔Prospectors
Certified Financial Planners typically manage institutional portfolios. - ✔✔False
Which of the following securities represents direct ownership of a business? -
✔✔Common stock
The U.S. stock markets tend to produce the highest rate of return each year. - ✔✔False
Sharnel Bitker expected the price of PharmaScripts shares to drop in the near future in
response to the expected failure of its new drug to pass FDA tests. As a result, she sold
short 1,100 shares of PharmaScripts at $8.37. How much would Sharnel earn or lose on
this transaction if she repurchased the 1,100 shares eight months later at each of the
following prices per share?
a. $12.97
b. $8.22
c. $5.16
d. $16.12
e. $11.33 - ✔✔a. ($8.37 - $12.97) x 1,100 = -$5,060
b. ($8.37 - $8.22) x 1,100 = $165
c. ($8.37 - $5.16) x 1,100 = $3,531
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 2
Questions and Answers 100% Pass
Stocks are a(n) ________ investment representing ________ of a business. - ✔✔Direct;
Ownership
The government is generally - ✔✔A demander of funds in the financial market.
Alexandra purchased a stock one year ago at a price of $64 a share. In the past year, she
has received four quarterly dividends of $1.50 each. Today she sold the stock for $76 a
share. Her capital gain per share is - ✔✔$12
A major goal of corporate financial management is to increase the value of the firm to
investors. - ✔✔True
The governmental agency that oversees the capital markets is the - ✔✔Securities and
Exchange Commission.
Stocks purchased in the secondary market are purchased - ✔✔From other investors.
The great majority of transactions on the NYSE are executed - ✔✔Automatically
through electronic technology.
Which of the following is currently a requirement for a stock to be listed on the NYSE? -
✔✔Global market capitalization of at least $200 million.
Margin trading will magnify losses on a percentage basis. - ✔✔True
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 1
, An investor short sells 500 shares of a stock for $35 per share. The initial margin is 52%.
How much equity will be required in the account to complete this transaction? - ✔✔(500
x $35) x .52 = $9100
Which of these alternatives is NOT an option available to companies offering their stock
to the public for the first time? - ✔✔Prospectors
Certified Financial Planners typically manage institutional portfolios. - ✔✔False
Which of the following securities represents direct ownership of a business? -
✔✔Common stock
The U.S. stock markets tend to produce the highest rate of return each year. - ✔✔False
Sharnel Bitker expected the price of PharmaScripts shares to drop in the near future in
response to the expected failure of its new drug to pass FDA tests. As a result, she sold
short 1,100 shares of PharmaScripts at $8.37. How much would Sharnel earn or lose on
this transaction if she repurchased the 1,100 shares eight months later at each of the
following prices per share?
a. $12.97
b. $8.22
c. $5.16
d. $16.12
e. $11.33 - ✔✔a. ($8.37 - $12.97) x 1,100 = -$5,060
b. ($8.37 - $8.22) x 1,100 = $165
c. ($8.37 - $5.16) x 1,100 = $3,531
COPYRIGHT © 2025 BY GRACE AMELIA, ALL RIGHTS RESERVED 2
