Wall Street – the Heart of Financial World

Wall Street – the Heart of Financial World

Best regards, Liudmila Guzikova. Dear students! I suggest you watching the film which, I believe, will be interesting and contribute to your professional competence. Informative time of the film is about 35 min. Afterward you should answer few questions.

How Wall Street Works https: //www. youtube. com/ watch? v=VYPe. Mq 0 rxp. M

Good luck! All answers should be in written form. If the time for answers was too short you may continue at home and bring the answers for the next class. If you pick not less that 80% of maximal possible amount then you did not spend the time in vain.

Questions (1) Was watching the film useful? Have you found something new or remembered something you already knew? What new information have you got from the film?

Questions (2) What kind of securities did Carnival Corp. issued to raise money? (1 point) What was the price of IPO? (1 point) What is zero-coupon bond? Does the issuer pay interest on it? For what maximal term do American companies issue zero-coupon bonds? (2 points)

Questions (3) What was the initial price of zero-coupon bond for 15 years if the buyer got 7. 5% annual? (3 points) To which securities the bond can be converted? (1 point) What risks have the issuer and the buyer of convertible bonds? (1 point for each position, max 4)

Questions (4) How do they call the stock of the most large and reliable companies? (1 point) What’s the main difference between NYSE and NASDAQ? (1 point) Who’s help you may need to make the trades in stock market? (1 point)

Questions (5) How do you get information about the price of the trade you have made in NASDAQ? (1 point) How can you calculate the yield: what data do you need and what formula should you use? (3 points) What events enforce market prices move together? (1 point )

Questions (6) How many companies were included to DJ index in 1896 th ? (1 point) Is this true that investing in index is the most risky investment in the stock market? Explain your opinion. (2 points) What types of options were told about? (1 point)

Questions (7) What difference had you descried between NYSE and CME? (1 point) What types of securities fraud were mentioned? (1 point for each position, max 3) How to decrypt the abbreviation NASD? (1 point)

Questions (8) What common mistakes should not the professional do when starts to invest on his own? (1 point for each position, max 8)