International Finance And Treasury - Study Mode

[#151] Gross proceeds of stock is $37000 and underwriter spread is $25000
Correct Answer

(C) $12,000

[#152] Type of index in which current values of stock are added together and divided by value of stock on base date is classified as
Correct Answer

(A) value weighted index

Explanation

Solution: Type of index in which current values of stock are added together and divided by value of stock on base date is classified as value weighted index. A value-weighted index assigns a weight to each company in the index based on its value or market capitalization.

[#153] Buying price of stock is $35 and it can be sold for $30 whereas dividend paid is $6 then return on stock is
Correct Answer

(A) 36.67%

Explanation

Solution: Margin = 35- 30 = 5 Dividend = 6 Total return = 11 Cost = 30 Return on stock 11/30 × 100 = 36.67%

[#154] Particular place at which transactions of New York stock exchange occurs is classified as
Correct Answer

(A) trading post

Explanation

Solution: Particular place at which transactions of New York stock exchange occurs is classified as trading post. A trading post, trading station, or trading house, also known as a factory, was in past centuries an establishment for factors and merchants carrying on business in thinly inhabited and developed regions or countries.

[#155] Type of contract which involves immediate exchange of funds and assets is classified as
Correct Answer

(A) spot contract

Explanation

Solution: Type of contract which involves immediate exchange of funds and assets is classified as spot contract. A spot contract is a document that has a purchase or sale of a currency, security, or commodity for quick delivery and payment for the spot date, which is around two days after the trade date.