Question

1) NASDAQ is directly related to the operations of the NYSE.

FALSE

TRUE

2) The Standard & Poor's Midcap Index is composed of 500 middle-sized firms.

True

False

3) The Sarbanes-Oxley Act:

a. has reduced the number of foreign companies willing to list their shares on U.S. exchanges.

b. was enacted under the Securities Exchange Act of 1934.

c. reduces the reporting requirements for publicly traded firms.

d. has made it possible for small firms to list their shares in the public markets.

e. was the loophole that enabled corporate executives to misrepresent their financial statements during the late 1990s and early 2000s.

4) Least squares trend analysis is used to take a simple average of past data.

True

False

5) The only compensation anticipated from an investment is for inflation protection.

TRUE

FALSE

6) The accounting frauds and scandals that took place during the stock market boom of the late 1990s resulted in what significant Act?

a. Sarbanes-Oxley Act

b. Glass-Steagall Act

c. Honesty in Financial Reporting Act

d. Securities Exchange Act

e. Gramm-Leach Bliley Act

Answer 1

1. False. Both are related with different exchanges in different countries.

2. False. It consists of 500 big firms

3. Option A is correct. The act has made disclosures more stringent hence not everyone would try to get listed

4. False. It is used to find the deviation of the data from the mean

5. False. Investors also anticipate returns from their investments which are not just to protect them from inflation.

6. Option A is correct. Sarbanes Oxley was formed.