322-20

The market wherein shares of stock are privately sold is called the third market.  

A) True  
B) False

A corporation must have at least 1,000 stockholders with 100 or more shares each to qualify for listing on the New York Stock Exchange.  

A) True  
B) False
 

The American Stock Exchange recently merged with the Archipelago Exchange and plans to fully integrate the latter's electronic system into the New York Stock Exchange's traditional open outcry auction system.  

A) True  
B) False

Common stock represents a greater risk on the part of the investor than does preferred stock.  

A) True  
B) False

Foreign investors continue to be the dominant holders of corporate stock in the United States.  

A) True  
B) False

____________________ can be reissued without additional filing fees in the future, should the firm wish to tap the equity market for funds.  

A) IPOs  
B) Debt  
C) A Bankers Draft  
D) Treasury shares  
E) none of the above

Backdating of stock options has become significantly more difficult since the passage of:  

A) the Securities Act Amendments.  
B) the Fair Practices Act.  
C) the Sarbanes-Oxley Act.  
D) the Securities and Exchange Act.

Foreign companies with more than _____________ in assets and at least ___________ shareholders whose stock is traded in the United States must register with the Securities and Exchange Commission.  

A) $5M; 500  
B) $5M; 5000  
C) $25M; 500  
D) $550M; 1000  
E) none of the above

Electronic communication networks (ECNs) allow trading to take place in virtually all major equity markets with trading hours each day substantially:  

A) unchanged.  
B) shortened.  
C) altered.  
D) lengthened.  
E) none of the above

The purchasing of stock by an investment bank for resale in the public market is called:  
A) an IPO.  
B) the private equity market.  
C) the third market.  
D) investment.  
E) none of the above