Test bank International Finance MCQ wordChap 13Word文件下载.docx

Test bank International Finance MCQ wordChap 13Word文件下载.docx

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A

Topic:

EquitySourcing

Skill:

Recognition

2）

InvestmentbankingservicesincludeWHICHofthefollowing?

advisingwhenasecurityshouldbecross-listed

preparationofstockprospectuses

helptodeterminethepriceoftheissue

alloftheabove

D

InvestmentBanking

Conceptual

3）

Mostfirmsraisetheirinitialcapitalinforeignmarkets.

FALSE

RaisingCapital

4）

Whichofthefollowingisthetypicalorderofsourcingcapitalabroad?

Aninternationalbondissue,thencrosslistingtheoutstandingissuesonotherexchanges,thenaninternationalbondissueinthetargetmarket.

Aninternationalbondissueinthetargetmarketthencrosslistingtheoutstandingissuesonotherexchanges,thenaninternationalbondissue.

Aninternationalbondissue,thenaninternationalbondissueinthetargetmarket,thencrosslistingtheoutstandingissuesonotherexchanges.

Crosslistingtheoutstandingissuesonotherexchanges,thenaninternationalbondissue,thenaninternationalbondissueinthetargetmarket.

C

GlobalEquitySourcing

5）

________arenegotiablecertificatesissuedbyabanktorepresenttheunderlyingsharesofstock,whichareheldintrustataforeigncustodianbank.

NegotiableCDs

Internationalmutualfunds

Depositaryreceipts

Eurodeposits

DepositaryReceipts

Recognition

6）

DepositaryreceiptstradedoutsidetheUnitedStatesarecalled________depositaryreceipts.

Euro

Global

American

Noneoftheabove

B

GlobalDepositaryReceipts

7）

EachADRrepresents________ofthesharesoftheunderlyingforeignstock.

amultiple

100

1

ADRshavenothingtodowithforeignstocks.

AmericanDepositaryReceipts

8）

ADRscannotbeexchangedfortheunderlyingsharesoftheforeignstock,therefore,arbitragecannotkeepthepricesinlinewiththeforeignpriceofthestock.

9）

WhichofthefollowingisNOTanadvantageofADRstoU.S.shareholders?

TransferofownershipisdoneintheU.S.inaccordancewithU.S.laws.

Intheeventofthedeathoftheshareholder,theestatedoesnotgothroughaforeigncourt.

SettlementfortradingisgenerallyfasterintheUnitedStates.

AlloftheaboveareadvantagesofADRs.

10）

ADRsthatarecreatedattherequestofaforeignfirmwantingitssharestradedintheUnitedStatesare________.

facilitated

unfacilitated

sponsored

unsponsored

11）

WhopaysthecostsofcreatingasponsoredADR?

theforeignfirmwhosestocksunderlietheADR

theU.S.bankcreatingtheADR

boththeU.S.bankandtheforeignfirm

theSECsincetheyrequiretheregulation

12）

AnunsponsoredADRmaybeinitiatedwithouttheapprovaloftheforeignfirmwiththeunderlyingstock.

13）

LevelIADRstradeprimarily

ontheNewYorkStockExchange.

ontheAmericanStockExchange.

overthecounterorpinksheets.

LevelIADRstypicallydonottradeatall,butinsteadareprivatelyissuedandhelduntilmaturity.

14）

LevelIIADRsmustmeet

U.S.GAAPstandards.

homecountryaccountingstandards.

bothU.S.GAAPandhomecountrystandards.

noneoftheabove.

15）

Level________istheeasieststandardtosatisfyforissuingADRs.

144a

III

II

I

16）

LevelIIIADRcommitmentappliesto

firmsthatwanttolistexistingsharesontheNYSE.

banksissuingforeignmutualfunds.

ADRissuesofunder$25,000.

thesaleofanewequityissuedintheUnitedStates.

17）

Bycrosslistingandsellingitssharesonaforeignstockexchangeafirmtypicallytriestoaccomplishwhichofthefollowing?

improvetheliquidityofitsexistingshares

increaseitsshareprice

increasethefirm'

svisibility

CrossListingEquityShares

Conceptual

18）

ADRsareconsideredaneffectivewayforfirmstoimprovetheliquidityoftheirstock,especiallyifthehomemarketissmallandilliquid.

TRUE

19）

Inorder,thelargeststockexchangesintheworldbasedonmarketcapitalizationofthesecuritiestradedthereare________.

London,NYSE,andNasdaq

NYSE,Nasdaq,andLondon

Nasdaq,NYSE,andLondon

Tokyo,NYSE,andLondon

WorldEquityMarkets

20）

Thestockexchangewiththegreatestvalueofsharestradedis________.

NYSE

Tokyo

Nasdaq

London

21）

TheTokyoexchangeisthenumberonechoiceoffirmslookingtogainliquiditybycross-listingtheirequitysecurities.

22）

Transactioncostsfortradingequitysecuritiesasmeasuredbythebid-askspreadsarelowestonwhichexchange?

23）

ThenumberofforeignfirmstradedontheLondonexchangeis________thanthenumbertradedontheNYSE,andthecostsoflistinganddisclosureinLondonare________thosefortheNYSE.

lessthan;

lessthan

greaterthan

greaterthan;

24）

Theleastliquidstockmarketsasidentifiedbytheauthorsofferlittleliquidityfortheirowndomesticfirms,andareoflittlevaluetoforeignfirms.

MarketLiquidity

25）

WhichoneofthefollowingcharacteristicsdoesNOTcontributetooverallmarketliquidity?

Significantmarketmakingactivities.

Reducedtransactioncosts.

Effectivecrisismanagement.

Alloftheabovecontributetoefficientmarkets.

26）

Yourauthorsnoteseveralempiricalstudiesthathavefound

nosharepriceeffectforforeignfirmsthatcross-listonmajorU.S.exchanges.

apositivesharepriceeffectforforeignfirmsthatcross-listonmajorU.S.exchanges.

anegativesharepriceeffectforforeignfirmsthatcross-listonmajorU.S.exchanges.

EmpiricalEvidenceofCross-Listing

27）

Theauthorsnoteempiricalevidencethatshowscross-listingforeignsharesofstockonU.S.exchangeshasapositivestockpriceeffect.________forthelistingofADRs.

Thereisnostockpricereaction

Thereisanegativestockpricereaction

Thereisapositivestockpricereaction

Noneoftheaboveistrue.

28）

EmpiricalevidenceshowsthatnewissuesofequitybydomesticfirmsintheU.S.markettypicallyhasa________stockpricereactionandnewequityissuesintheU.S.marketsbyforeignfirmswithsegmenteddomesticmarketshavea________stockpricereaction.

negative;

negative

positive;

positive

29）

Inadditiontogainingliquidity,whichofthefollowingcouldalsobeconsideredalegitimatereasonforcross-listingequity?

enhanceafirm'

slocalimage

becomemorefamiliarwiththelocalfinancialcommunity

getbetterlocalpresscoverage

ReasonsforCross-Listing

30）

Forthemostpart,U.S.SECdisclosurerequirementsare________stringentthanother,non-U.S.equitymarketrules.

more

less

asequally

noneoftheabove

SECDisclosureRequirements