Corporate Equity and Ownership Structures Quiz

Explore corporate finance with this quiz covering equity types, ownership structures, stock market terms, and more. Test yourself now!

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Which of the following is a common type of corporate equity?

Preferred Stock

Debentures

Corporate Bonds

Government Securities

What does 'IPO' stand for in the context of corporate ownership?

Initial Private Offering

Institutional Purchase Order

Initial Public Offering

Incorporated Property Ownership

What is a 'shareholder'?

An employee of the company

A person who borrows from the company

An owner of a portion of the company

A creditor of the company

What is a 'proxy' in the context of corporate ownership?

A person appointed to represent and vote on behalf of a shareholder

A financial document showing ownership of shares

A type of preferred stock

An interest-bearing security issued by a corporation

What is the role of a board of directors in a corporation?

To manage day-to-day operations

To represent shareholders' interests and oversee management

To execute strategic decisions made by management

To issue shares to the public

What is a 'stock certificate'?

A legal document proving ownership of shares in a corporation

A contract between shareholders and the corporation

A document detailing dividend payments

A form of corporate debt instrument

What is the primary purpose of issuing stock options to employees?

To dilute the ownership of existing shareholders

To provide employees with voting rights

To incentivize employees and align their interests with shareholders

To increase the company's debt

What is 'market capitalization'?

The total revenue generated by a company

The total value of all outstanding shares of a company

The amount of cash reserves held by a company

The total value of all company assets

What is the difference between common stock and preferred stock?

Common stockholders have voting rights, while preferred stockholders do not.

Preferred stockholders have voting rights, while common stockholders do not.

Common stock pays dividends regularly, while preferred stock pays dividends at maturity.

Preferred stock pays dividends regularly, while common stock pays dividends at maturity.

#10

What does the 'float' refer to in stock market terminology?

The total number of outstanding shares of a company

The difference between a company's assets and liabilities

The portion of shares available for trading by the public

The amount of cash and cash equivalents held by a company

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What is a 'treasury stock'?

Stock issued by the government

Stock held by the company itself

Stock that pays high dividends

Stock with voting rights

#12

What is a 'poison pill' defense in corporate governance?

A strategy to increase shareholder value

A measure to protect against hostile takeovers

A tactic to reduce executive compensation

A mechanism to ensure board independence

#13

What is a 'spin-off' in corporate finance?

A process of merging two companies

A type of corporate restructuring involving the creation of a new independent company

A method of issuing new shares to existing shareholders

A financial instrument used for hedging risk

#14

What is 'treasury stock method' used for?

To calculate earnings per share

To calculate the value of treasury stock

To calculate stock option dilution impact on EPS

To calculate dividend yield