Automatic dividend reinvestment O is a requirement of all mutual fund companies. O compounds share ownership. O allows one to defer taxes on this income. O reduces investment yields.
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- EFTs have many of the same diversification benefits of ___. A) a share of stock B) an open end mutual fund C) a tax advantaged IRAwhich one is correct please confirm? QUESTION 26 Under dividend reinvestment plans, shareholders can automatically ____. a. transfer from retained earnings accounts to equity accounts. b. use dividends to purchase additional shares c. reduce their taxable income d. increase their cash inflowsWhich of the following statements is false? A. Mutual funds are pool investor funds to purchase financial instruments and thus reduce risks through diversification. B. Initial public offering (IPO) occurs when firm issues stock in the public market for the first time. C. The difference between current assets and non-current assets equals to working capital. D. Owner’s equity is the residual interest in assets that remains after subtracting an entity’s liabilities.
- Which of the following statements regarding dividend reinvestment plans (DRIPs) is true? Group of answer choices DRIPS typically allow shareholders to avoid paying brokerage fees Many DRIPs allow shareholders to purchase shares of the stock at lower-than-market prices all of them Shareholders can avoid taxes that they would have had to pay if they reinvest the dividends through a tax qualified DRIP rather than receiving the cash paymentOne drawback of ETFs is that investors: a) are forced to pay higher cost and fee as compared to mutual funds. b) are not able to diversify their investments. C) must pay commission when making a purchase. d) can only buy or sell shares after the major stock exchanges are closed.Question Two Discuss the benefits and drawbacks, to the shareholders of a company, of a public listing on a stock exchange compared to private equity finance as a way of disposing their shares. Discuss circumstances in which a Management Buy - Out (MBO) might be an appropriate form of divestment from a business. Explain the factors the venture capital fund is likely to consider or impose when financing the MBO
- What are some comparative advantages of investing in the following?a. Unit investment trusts.b. Open-end mutual funds.c. Individual stocks and bonds that you choose for yourself.When Tory invested in a mutual fund composed of bonds, her primary risk is that the bonds held by the mutual fund could ______________, which occurs when a company borrows money through the issuance of debt securities and does not pay either the interest or the principal. fluctuate withhold dividends default split stabilizeWhich of the following is an appropriate goal for the firm? Select one: a. All of these b. In secondary markets, outstanding shares of stock are bought and sold among investors. c. An active secondary market causes firms to sell their new debt or equity issues at a higher cost of funds. d. A secondary market allows investors to share their risk and return e. For an investor, the function of secondary markets is to provide profitability for the shares of securities they own.
- which of the following applies to mutual fund trust? a) it has board of directors and shareholders b) it has unitholdes c) it is not efficient at passing through income to investors d) it is always closed endMatching Type. Choose the correct answer in the box provided. It entitles an employee to receive cash which is equal to the excess of market value of the entity's share over a pre-determined price for a stated number of shares. * These are actually deferred cash dividends. * It is a kind of appropriation for retained earnings supported by the trust fund doctrine. *Which of the following is an example of direct finance? Select one:investors buy shares in a mutual fundA pension fund manager buys a security in the secondary marketinvestors buy shares in a mutual fundNone of the answers are correctcompany buy security in a secondary market