Financial Questions
Question 1 of 40
What does IPO stand for?
- Initial Public Offering
- It’s Probably Overpriced
- Investing Pays Off
- Instant Profit Opportunity
Question 2 of 40
An IPO is the first time that...
- a company reaches an investment bank and declares that it wants to go public
- a company offers shares to the public on a Foreign Exchange
- a company offers shares to the public on a Stock Exchange
- the shares of the company are available on the secondary market
Question 3 of 40
Which of the following is not a popular Stock Exchange?
- Hong Kong Exchange
- Euronext
- London Stock Exchange
- Europrev
Question 4 of 40
What reasons are there for a company to go public?
- All answers provided are correct
- To spread the risk of business among a broader range of investors
- To acquire a company that supplies you with the raw materials needed for production
- To raise more capital so that the early shareholder could cash out
Question 5 of 40
What does a company do first prior an IPO?
- Announces its intentions to list on media and through its advisers
- Chooses the date for an IPO to summon
- Plans how to spend all the capital raised
- Prepares a sales document known as a ‘prospectus’
Question 6 of 40
What does an IPO underwriter do?
- Guarantees that a certain amount of stocks will be sold at the initial price and promises to buy the surplus
- Contacts a large network of investment organisations to raise investment interest
- All answers provided are correct
- Works with a company to ensure that all regulatory requirements are satisfied
Question 7 of 40
Shares becoming ‘illiquid’ – a risk that every business has to take if it goes public.
- False
- True
Question 8 of 40
What company carried out the largest IPO of all time?
- Ali Baba Group – $25 billion
- McDonald's – $21 billion
- Apple – $28 billion
- Facebook – $16 billion
Question 9 of 40
What is the ‘issued capital’ of a company if it’s capital is divided into 100 shares with a face value of £2?
- £200
- £100
- £2
- £50
Question 10 of 40
What is the ‘market capitalisation’ if investors are willing to pay £1.50 per share? (1000 shares issued)
- Not calculable with the information given
- £1000
- £1,5
- £1500
Question 11 of 40
Which of the following is not a public stock market or an exchange?
- New York Stock Exchange
- AIM
- MBA
- London Stock Exchange
Question 12 of 40
By contacting what authority you can’t buy or sell shares?
- Banks that offer share-dealing services
- Stockbroker
- Securities dealer
- Company whose shares you are planning to trade
Question 13 of 40
Assume the spread on an instrument is 10 cents. What is the ask price, if the bid price is $23.35?
- $24.35
- $23.45
- $22.35
- $23.25
Question 14 of 40
Assume the spread on an instrument is 20 cents. What is the bid price, if the ask price is $67.32?
- $67.52
- $67.12
- $68.32
- $67.32
Question 15 of 40
Why buy shares?
- No answers provided are correct
- All answers provided are correct
- Companies may pay out dividends
- They may go up in value
Question 16 of 40
Which of the following probably wouldn’t affect the price of shares?
- Company announcements
- Political events
- Working hours of a public stock market
- ‘Gut-feeling’ in the market
Question 17 of 40
What is considered a ‘Soft commodity’?
- No answers provided are correct
- Sugar
- Share of Apple
- Meat products
Question 18 of 40
What is considered a ‘Hard commodity’?
- All answers provided are correct
- Crude oil
- Live animals
- Gold
Question 19 of 40
To what category does ‘Livestock’ also relate?
- Hard commodities
- Soft commodities
- Energy
- No answers provided are correct
Question 20 of 40
Which is one of the main global commodities market?
- The London Metal Exchange
- All answers provided are correct
- CME Group
- The Intercontinental Exchange
Question 21 of 40
… are enabling products to be bought and sold at a fixed price for delivery at a particular future time.
- Futures
- Forward contracts
- CFDs
- Options
Question 22 of 40
… give a party an option to buy or sell at a future time but not the obligation to do so.
- Futures
- Options
- Forward contracts
- CFDs
Question 23 of 40
… give a party an option to buy or sell at a future time but they require parties to deliver a commodity or pay for it.
- CFDs
- Options
- Forward contracts
- Futures
Question 24 of 40
What does ETF stand for?
- Escape The Fate
- Employee Trust Fund
- Exchange Traded Fund
- Early Termination Fee
Question 25 of 40
Which of the following is not an index?
- S&P 500
- Jow Dones
- FTSE 100
- Euronext
Question 26 of 40
Which factor could influence stock market behaviour?
- Stock market confidence
- All answers provided are correct
- Interest rate changes
- Economic performance announcements
Question 27 of 40
How many companies is FTSE 100 compiled from?
- 50
- 100
- 30
- 110
Question 28 of 40
How many companies is NASDAQ Dow Jones Industrial Average compiled from?
- 110
- 30
- 100
- 50
Question 29 of 40
Companies join and are dropped from an index as their market cap increases or falls.
- False
- True
Question 30 of 40
Can futures or options on stock market indices be bought?
- Only options
- Only futures
- Yes
- No
Question 31 of 40
What does FX stand for?
- Forecast
- The Financial Express
- Foreign Exchange
- Fingers Crossed
Question 32 of 40
Roughly how much is traded globally every working day?
- $400 billion
- $4 billion
- $40 billion
- $4 trillion
Question 33 of 40
Which of the financial markets is the biggest?
- Stocks
- Commodities
- Derivatives
- Forex
Question 34 of 40
Why trade forex?
- All answers provided are correct
- Need for real money to obtain a currency to buy goods or services
- Investment opportunity
- Speculation
Question 35 of 40
In this scenario (EUR/USD) which of the two is the ‘base currency’?
- USD
- EUR
Question 36 of 40
Who are the biggest buyers and sellers of forex?
- Banks
- Governments
- Companies
- Investment funds
Question 37 of 40
What does the ‘big five’ mean in forex?
- Five most popular currencies
- No answers provided are correct
- Five countries with highest forex activity
- Five banks that account for a great portion of market turnover
Question 38 of 40
How much of the global market turnover in 2015 did the ‘big five’ account for?
- 10%
- 40%
- 25%
- >50%
Question 39 of 40
Which of the following is not a currency short code?
- ATM
- JPY
- USD
- EUR
Question 40 of 40
Which of the following is an advantage of forex?
- High volatility
- Complex price determination process
- High liquidity
- Lack of transparency
