Depending upon the circumstances, equity can also be referred to as: A. ordinary shares B. common stock C. risk capital D. shareholders’ funds. E. all of these. 2. Debt financing can be raised by firms in the ________markets. A. money and share B. bond and FX C. share and derivative D. money and bond E. share and FX. 3. An initial public offering: A. does not always raise additional equity funds for the business B. is the initial sale of shares to the public C. is also known as a ‘float’ D. is the process by which shares become listed on the ASX E. all of these. 4. In order to conduct a secondary market for shares, the ASX: A. sets the rules for the admission of companies to the market B. establishes trading and settlement arrangements C. discloses trading information, such as individual share prices D. promotes itself as a market for securities. E. all of these. 5. A difference between ordinary and preference shares is: A. preference dividends are payable only after ordinary dividends have been paid B. preference dividends are tax deductible C. preference dividends are a fixed amount D. ordinary shares are less risky E. preference shares have greater potential for capital gains.
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