Financial Markets and Securities Offerings Paper 2

1

Financial market efficiency implies that






2

The strong form of the efficient markets hypothesis (EMH) states that current market prices of securities reflect






3

The semistrong form of the efficient markets hypothesis (EMH) states that current market prices of securities reflect






4

The weak form of the efficient markets hypothesis (EMH) states that current market prices of securities reflect






5

Moody’s and Standard & Poor’s debt ratings depend on






6

If a bond is rated below BBB, it is called






7

Which one of the options below best describes a public offering where there is less price uncertainty due to the existence of a benchmark price?






8

Confidential negotiations between Company A and Company B were completed this morning. It was decided that in 1 week, it will be publicly announced that Company A will acquire Company B for a cash offer of a 30% premium over Company B’s current market price. If the stock price of Company B does not react at all today but rises by 30% with the public announcement next week, this implies that the market is






9

Which of the following statements is not correct with regard to initial public offerings (IPOs)?






10

The most important considerations with respect to short term investments are






Result

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