International Finance And Treasury - Study Mode

[#371] Votes for each stock holder were multiplied to number of elected directors to calculate
Correct Answer

(B) number of votes assigned

Explanation

Solution: Votes for each stock holder were multiplied to number of elected directors to calculate number of votes assigned.

[#372] Feature of stock which allows stock holders to buy shares at price below than market price is called
Correct Answer

(C) rights offering

Explanation

Solution: Feature of stock which allows stock holders to buy shares at price below than market price is called rights offering. A rights offering (rights issue) is a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.

[#373] Type of contract which involves exchange of assets will be occurred in future at price settled daily is classified as
Correct Answer

(C) future contracts

Explanation

Solution: Type of contract which involves exchange of assets will be occurred in future at price settled daily is classified as future contracts. A futures contract is a legal agreement to buy or sell a particular commodity or asset at a predetermined price at a specified time in the future. Futures contracts are standardized for quality and quantity to facilitate trading on a futures exchange.

[#374] Capital gains and dividends are considered as components of
Correct Answer

(A) return

Explanation

Solution: Capital gains and dividends are considered as components of return. Capital gains are profits that occur when an investment is sold at a higher price than the original purchase price. Dividends are assets that are paid out of the profits of a corporation to the stockholders.

[#375] Prices that are adjusted day to day to picture current conditions of futures markets are classified as
Correct Answer

(B) market to market prices

Explanation

Solution: Prices that are adjusted day to day to picture current conditions of futures markets are classified as market to market prices. Mark to market (MTM) is a measure of the fair value of accounts that can change over time, such as assets and liabilities. Mark to market aims to provide a realistic appraisal of an institution's or company's current financial situation.