1. What type of firm invests in companies for non-financial reasons?

A.) Angel Investors

B.) Investment Banks

C.) Private Equity

D.) Venture Capitalists

2. The “red-herring prospectus” used to advertise an upcoming IPO to potential investors includes all of the following except __________.

a. The company’s financial statements

b. The issue price of the stock being issued

c. Officers and major owners (called blockholders) of the company

d. Company history and future plans

3. Which statement is TRUE?

a) If you buy stock through a market order, you will have to pay the highest Bid price

b) Limit orders allow an investor to automatically sell a stock if it falls to a specified price

c) The specialist has the responsibility to buy or sell stock from their own account in order to stabilize the market, even if doing so results in a loss to them

d) Small stocks are often said to sell in the “red-herring” market