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State laws covering the issue and trading of securities
Standard terms and conditions in a debt contract
.01%
Bond whose principal repayment is linked to the price of another
security. The bonds are issued in two tranches: 1st: the repayment
increases with the price of the other security; 2nd: the repayment
decreases with price of the other security
Basis Point
Method for valuing options that assumes there are only two possible changes in the asset price in any one period
Security issue where one or two underwriters buy the entire issue
Analysis of the level of sales at which a project would just break even
One plus profitability index
Option whose existence depends on asset price hitting some specified barriers (down and out option, down and in option)
The Purchase of two call options with different exercise prices and
simultaneous sale of two calls exercisable at the average of these two
exercise prices. provides a bet that the share price will stay within a
narrow range.
widespread DECLINE in security prices
General term for a document demanding payment
Maturity of a newly issued Treasury Bond
Short-term loan to provide temporary financing until more permanent financing is arranged
Branch of finance that stresses aspects of investor irrationality
An arrangement whereby underwriters do not commit themselves to selling a security issue but promise only to use best efforts.
The managing underwriter for a new issue. the book runner maintains the book of securities sold
Widespread rise in security prices
single final payment of a loan (in contrast to payment in installments)
Large and creditworthy company
Measure of Market Risk
rating of the likelihood bond's default
A term signifying the extent of an underwriter's commitment in a new issue, major bracket, minor bracket
residual risk that results when the two sides of a hedge do not move exactly together
registered ownership of stock without issue of stock certificate
Banker's acceptance
long-term debt
condition in which spot price of commodity exceeds price of future
Written demand that has ben accepted by a bank to pay a given sum at a future date
Foreign Bond issue made in London
Repurchase agreement
Option that is exercisable on discrete dates before maturity
Discredited practice of using hindsight to select a grant date for at
the money executive stock options when the stock price (and therefore
exercise price) were unusually low
Long-term German Government bond
Security for which primary evidence of ownership is possession of the certificate
Interest deducted from the initial amount of a loan
International agreement on the amount of capital to be maintained by large banks to support their risky loans
Document establishing ownership of goods in transit
the procedure whereby underwriters gather non-binding indications of demand for a new issue
Colloquial term for the New York Stock Exchange
large final payment (when a loan is repaid in installments)
Price at which a dealer is willing to buy
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