From 1965 to 2003 Large Block Trades of Common Stock

question 90

Multiple Choice

From 1965 to 2003 large block trades of common stock traded on the New York Stock Exchange increased from 3.1 percent to almost 50 percent.This indicates that

• A)Individual investors are getting out of the market entirely
• B)Individual investors are avoiding a long term buy-and-hold strategy in favor of market timing
• C)The majority of trading is done by institutional investors
• D)Small investors panic at every market swing due to the crash of 1987.

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Definitions:

Bonds With Warrants

Financial instruments that consist of a bond combined with a warrant, allowing the holder to purchase shares in the issuing company at a specified price.

Coupon Rate

The interest rate stated on a bond or fixed-income security that represents the annual interest paid to the bondholder.

Investment Bankers

Professionals who work in financial institutions, helping companies and governments with raising capital, mergers, and acquisitions.

Straight Bonds

Conventional bonds that pay a fixed interest rate over their lifetime and return the principal at maturity, without any special features or options.