Answer Key
Securities and foreign exchange – Practice 1
Choose the correct answer:
- The major British companies are [quoted] on the London Stock Exchange.
- Most investors do not have the infrastructure (e.g. storage capacity) to directly invest in [commodities] such as oil, corn, and copper.
- Pegasus Software looks like a good buy. The company was [floated] last year and its share price has been steadily growing since then.
- Shares which usually receive a fixed dividend, which must be paid in full before any dividend is paid on other shares are called [preference shares]
- Investors often invest in [blue-chips] , such as Nestle or Coca-Cola because they are familiar with the brand, and think they will suffer little risk.
- Prices on the London FTSE fell to a five-year low. Dealers are pessimistic and no one can see an end to this [bear] market.
- The value written on a share is its... [face value]
- If a company wishes to issue 10,000 but they received applications for 15,000 shares, they are facing a(n) [oversubscription]
- Our contract is to buy 500 ounces of gold at $420 in 30 days, so we hope the price rises. It is an example of a(n): [futures contract]
- [qualification] share is needed in order to become CEO of the company.