1. The formation of the European Monetary Union and its single currency Euro is expected to

eliminate foreign currency risk between its member countries.

create stock and bond prices denominated in Euros.

have stock and bond indexes tracking a combined group of common stocks and bonds from the member countries.

All of these.

2. The investment banker may advise clients on a continuing basis about

the types of securities being sold.

the number of shares for distribution.

the timing of the sale.

all of these.

3. The market stabilization function usually

is performed by the company.

lasts six to nine months.

provides price support for the stock during the distribution period.

is illegal.

4. The most important feature of the preemptive right is that the rights

may be sold for profit.

afford stockholders protection against dilution.

may be cumulatively voted.

are nontransferable.

5. The strong form of the efficient market hypothesis states that

past price data is positively correlated to future prices.

prices reflect all public information.

all information both public and private is immediately reflected in stock prices.

none of these

6. The term debenture refers to

long-term, secured debt.

long-term, unsecured debt.

the after-acquired property clause.

a 100-page document covering the specific terms of the offering.

7. Under SEC Rule 415, shelf registration

requires that companies registering securities, file a detailed statement for ongoing SEC review and approval.

has been used more frequently for equity than debt issues.

has allowed smaller investment bankers to compete for more business.

allows a corporation to issue securities when market conditions are more advantageous than current conditions.

8. Underpricing occurs

when additional shares are to be issued for companies with securities already publicly traded.

to aid in the market's reception of the securities.

in large secondary offerings.

all of these.

9. When comparing common stock of the same company it is fair to say that

all shares, no matter how many classes, are all created with the same equal rights.

companies sometimes have two different classes of shares with unequal rights to dividends and votes.

the Securities and Exchange Commission allows only one class of common stock.

investors are indifferent between class A and class B shares.