Which of the following statements about investments are false?i. Full service advisory brokers beyond executing trading orders offer additional services for their clients;ii. Capital gains os shareholders are caused by dividends payments;iii. A sudden market downturn can cause tactical asset allocation;iv. Dividend imputation system allows to transfer dividends directly from corporations to shareholders escaping government regulation and therefore increases the attractiveness of stock investments in Australia.

Which of the following statements about financial markets is not true? Group of answer choicesAn inital public offering is a way for companies to raise financial capital to build or expand their business.All of these.Investment banks facilitate the IPO connection between investors and entrepreneurs.Once investors purchase stock, they become part owners in the company and take on the risk of company failure.Bond purchasers become partial owners of the company they invest in.

2. Which of the following statements is FALSE?Video: 6.B. P5-16 (Payout policy with perfect markets)Group of answer choicesD) In perfect capital markets, investors are indifferent between the firm distributing funds via dividends or share repurchases. By reinvesting dividends or selling shares, they can replicate either payout method on their own.C) In perfect capital markets, an open market share repurchase has no effect on the stock price, and the stock price is the same as the ex-dividend price if a dividend were paid instead.B) In a perfect capital market, when a dividend is paid, the share price drops by the amount of the dividend when the stock begins to trade ex-dividend.A) In perfect capital markets, holding fixed the investment policy of a firm, the firm’s choice of dividend policy is irrelevant and does not affect the initial share price.

Which of the following statements is FALSE?A.Securities firms and investment banks perform only the brokerage function.B.Venture capital firms do not make outright loans.C.The value of assets is the traditional measure of size in the securities brokerage and investment banking industry. D.Investment banks specialize in the raising of debt and equity securities for corporations and governments.E.Securities firms specialize in the trading and brokerage of existing securities.

True or False QuestionTrue or false: The less time you have to let your investments work, the more advantageous it is to invest in stocks rather than short-term government bonds and certificates of deposit.True false question.TrueFalse

True or False QuestionTrue or false: Any time you invest in stocks, corporate bonds, and mutual funds that invest in stocks, you assume business failure risk.True false question.TrueFalse