Answer Key

Securities and foreign exchange – Practice 2

Fill in the gaps with the appropriate word or phrase in the correct form.
  1. During the first five years the company will not be allowed to pay  [dividends] to its shareholders and income will be ploughed back to its operations.
  2. Livermore both made, and subsequently lost, four multi-million dollar fortunes dealing in assets during his career as a  [speculator] , which spanned three decades.
  3. Investors holding HH bonds will continue to earn interest until their bonds reach their maximum value, i.e. final  [maturity] 20 years after issue.
  4. When you pay $3,500 to purchase a 20-year bond with a face value of $10,000 you are probably buying a  [zero-coupon] bond with no coupon or interest payment.
  5. Whenever a creditor tries to attach your assets, you can simply hand the  [bearer] shares of a corporation over to a friend or family member, who instantly become their owner.
  6. As they mature gradually over a period of years,  [serial] bonds are used to finance a project providing regular, level or predictable income streams.
  7. Early last year the Government in Vietnam  [issued] bonds to raise funds for building more schools.
  8. Steen & Strøm invited investors to  [subscribe] for shares in new shopping centre holding company.
  9. My wife and I would like to give our new niece a US Savings Bond. She is 2 months old and want to give her bonds that she can  [redeem] at 18+ yrs old to get a nice start-up capital.
  10. The Dutch government plans to dispose of its  [golden] share in KPN NV, which enabled it to veto any takeover of the company.