Financial Instruments and Market Analysis Quiz

1. What type of financial instrument represents ownership in a company? Select an option Equities Debt Instruments Derivatives Hybrid Instruments

Correct Answer: Equities

2. Which financial instrument is considered a fixed-income security? Select an option Bonds Common Stocks Options Swaps

Correct Answer: Bonds

3. What are options and futures examples of? Select an option Derivatives Equities Debt Instruments Hybrid Instruments

Correct Answer: Derivatives

4. What valuation method involves projecting future cash flows? Select an option Discounted Cash Flow (DCF) Analysis Comparable Company Analysis Precedent Transaction Analysis Technical Analysis

Correct Answer: Discounted Cash Flow (DCF) Analysis

5. What type of stock offers fixed dividend payments? Select an option Preferred Stock Common Stock Convertible Stock Hybrid Stock

Correct Answer: Preferred Stock