Which of the following statements are FALSE? Crypto-collateralised stablecoins backed by a basket of other cryptocurrencies are more diversified and hence more stable than those backed by a fiat currency such as the USD. Initial Public Offerings (IPOs) and Initial Coin Offerings (ICOs) are very similar since both raise funds for companies and both represent an equity stake in a company either in the form of shares (IPOs) or tokens (ICOs). BigTechs are potentially a bigger threat for banks than FinTechs since they have a much larger customer base. II and III. None of the statements. I and III. I and II. I, II and III. Choose 1 from above.

Which of the following statements are FALSE? Crypto-collateralised stablecoins backed by a basket of other cryptocurrencies are more diversified and hence more stable than those backed by a fiat currency such as the USD. Initial Public Offerings (IPOs) and Initial Coin Offerings (ICOs) are very similar since both raise funds for companies and both represent an equity stake in a company either in the form of shares (IPOs) or tokens (ICOs). BigTechs are potentially a bigger threat for banks than FinTechs since they have a much larger customer base. II and III. None of the statements. I and III. I and II. I, II and III. Choose 1 from above.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 3MCQ

See similar textbooks

Similar questions

Which of the following is correct? Transactions within the spot market can be used to mitigate and hedge risk. In an efficient market, it is not possible that a stock of the firm has a price equal to its intrinsic value. Index funds are funds that reflect the performance of a specific index An example of an indirect transfer of capital through investment banks is when an investor buys a unit of a fund from a bank that is invested in various financial assets such as bonds and stocks of other companies.
Which 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 about financial markets and securities are true? Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange. A corporation acquires new funds only when its securities are sold in the primary market. Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid. All of the choices are true.
Which of the following statements are true?I. Money markets are used to facilitate the transfer of short-term funds from individuals, corporations, or governments with excess funds to those with deficient funds. Even investors who focus on long-term securities tend to hold some money market securities because this enables them to maintain liquidity.II. Financial institutions manage their liquidity by participating in money markets. They may issue moneymarket securities when they experience cash shortages and need to boost liquidity. They can also sell holdings of money market securities to obtain cash.III. The value of a money market security represents the future value of the present cash flows generated by that security. Since money market securities represent debt, their expected cash flows are typically known.IV. The pricing of money market securities changes in response to a shift in the required rate of return by investors. The required rate of return changes in response to…
Which of the following statements about diversification is INCORRECT? A) Diversification is spreading your assets across different asset classes, sectors, countries or issuers of securities. B) Diversification is about purchasing shares with different correlations. C) Diversification is about “putting all your eggs in one basket”. D) Diversification is a benefit of investing in managed funds.
Which of the following defines a hedge fund the most? 1. A collective investment model based on issuing a fixed number of shares which are not redeemable from the fund. 2. A negotiable security that represents securities of a foreign company and allows that company's shares to trade in the U.S. financial markets. 3. A diversified portfolio that typically does not limit the number of shares it can offer, and they are bought and sold on demand. 4. A type of investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio construction and risk-management techniques to improve performance.
What effect does the trend in stock prices (subsequent to issue) have on a firm’s ability to raise funds through: (a) convertibles and (b) warrants?
Which of the following statements is false? A. Internal controls are the processes by which the firm ensures that it presents accurate financial statements. B. Greenfield investments provide uncertain cash flows with high yields and high growth potential. C. Footnotes allow investors or any users to improve their assessments of the amount, timing, and uncertainty of the estimates reported in financial statements. D. Secondary markets are the markets in which existing, already outstanding securities are traded among investors.
A fundamental analyst uses the discounted cashflow method to value firms, and has a short-term perspective on purchasing stocks and bonds. True or false?
One 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.
Which of the following statements is NOT true of PIPE transactions? In a PIPE transaction, investors purchase securities (equity or debt) directly from a publicly traded company in a private placement. PIPE transaction gives issuers faster access to capital. The securities are virtually always sold to the investors at a discount to the price at which they would sell in the public markets. PIPE transactions are registered with the SEC.
Explain whether the following statements are true or false.a. Derivative transactions are designed to increase risk and are used almost exclusivelyby speculators who are looking to capture high returns.b. Hedge funds typically have large minimum investments and are marketed to institutionsand individuals with high net worths.c. Hedge funds have traditionally been highly regulated.d. The New York Stock Exchange is an example of a stock exchange that has a physicallocation.e. A larger bid-ask spread means that the dealer will realize a lower profit.