股票市场+Stock+Market及答案解析.doc

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1、股票市场+Stock+Market 及答案解析(总分：52.00，做题时间：90 分钟)一、PART ONE(总题数：1，分数：8.00)A. If liability exceeds assets, negative equity exists. In an accounting context, shareholders equity (or stockholders equity, shareholders funds, shareholders capital or similar terms) re presents the remaining interest in assets

2、of a company, spread among individual shareholders of common or preferred stock.B. Therefore, a shareholder receives a dividend in proportion to their shareholding. For the joint stock company, paying dividends is not an expense; rather, it is the division of after tax profits among shareholders. Re

3、tained earnings (profits that have not been distributed as dividends) are shown in the shareholder equity section in the companys balance sheet-the same as its issued share capital.C. At first, all the secured creditors are paid against proceeds from assets. Afterward, a series of creditors, ranked

4、in priority sequence, have the next claim/right on the residual proceeds. Ownership equity is the last or residual claim against assets, paid only after all other creditors are paid. In such cases where even creditors could not get enough money to pay their bills, nothing is left over to reimburse o

5、wners equity.D. Preferred stock usually carries no voting rights, but may carry a dividend and may have priority over common stock in the payment of dividends and upon liquidation. Preferred stock may have a convertibility feature into common stock. Terms of the preferred stock are stated in a “Cert

6、ificate of Designation“.E. At the start of a business, owners put some funding into the business to finance operations. This creates a liability on the business in the shape of capital as the business is a separate entity from its owners. Businesses can be considered, for accounting purposes, sums o

7、f liabilities and assets; this is the accounting equation.（分数：8.00）(1).This definition is helpful in understanding the liquidation process in case of bankruptcy.（分数：1.00）A.B.C.D.E.(2).In accounting and finance, equity is the residual claim or interest of the most junior class of investors in assets,

8、 after all liabilities are paid.（分数：1.00）A.B.C.D.E.(3).Public companies usually pay dividends on a fixed schedule, but may declare a dividend at any time, sometimes.（分数：1.00）A.B.C.D.E.(4).The rating for prefer reds is generally lower since preferred dividends do not carry the same guarantees as inte

9、rest payments from bonds and they are junior to all creditors.（分数：1.00）A.B.C.D.E.(5).For a joint stock company, a dividend is allocated as a fixed amount per share.（分数：1.00）A.B.C.D.E.(6).Thus owners equity is reduced to zero. Ownership equity is also known as risk capital or liable capital.（分数：1.00）

10、A.B.C.D.E.(7).After liabilities have been accounted for the positive remainder is deemed the owners interest in the business.（分数：1.00）A.B.C.D.E.(8).Similar to bonds, preferred stocks are rated by the major credit rating companies.（分数：1.00）A.B.C.D.E.二、PART TWO(总题数：1，分数：6.00)Stock TradingParticipants

11、in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order of buying or selling.(9) thus providing a marketplace (virtual or real). The exchanges p

12、rovide real-time trading information on the listed securities, facilitating price discovery.Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry. This type of auction is used in stock exchanges and commodity exchanges where tra

13、ders may enter “verbal“ bids and offers simultaneously. (10) composed of a network of computers where trades are made electronically via traders.Actual trades are based on an auction market model where a potential buyer bids a specific price for a stock and a potential seller asks a specific price f

14、or the stock. (11) . When the bid and ask prices match, a sale takes place, on a first-come-first-served basis if there are multiple bidders or askers at a given price.The New York Stock Exchange is one of the physical exchanges, also referred to as a listed exchange- (12) . Orders enter by way of e

15、xchange members and flow down to a floor broker, who goes to the floor trading post specialist for that stock to trade the order. (13) . If a spread exists, no trade immediately takes placein this case the specialist should use his/her own re sources (money or stock) to close the difference after hi

16、s/her judged time. Once a trade has been made the details are reported on the “tape“ and sent back to the brokerage firm, which then notifies the investor who placed the order. (14) computers play an important role, especially for so-called “program trading“.A. The other type of stock exchange is a

17、virtual kindB. The purpose of a stock exchange is to facilitate the exchange of securities between buyers and sellersC. Although there is a significant amount of human contact in this processD. stocks listed on one exchange can also be traded on other participating exchangesE. The specialists job is

18、 to match buy and sell orders using open outcryF. Buying stock on margin means buying stock with money borrowed against the stocks in the same account.G. Buying or selling at market means you will accept any ask price or bid price for the stock, respectivelyH. only stocks listed with the exchange ma

19、y be traded（分数：6.00）填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_三、PART THREE(总题数：1，分数：6.00)On Monday, October 19, 1987, a wave of selling triggered widespread price declines in stock markets from New York to Australia. On that day, now infamous as “Black Monday“, over 600 million shares were traded on

20、 the New York Stock Exchange. The Dow Jones Industrial Average of the prices of 30 stocks of major US companies lost 22.6 percent of its value on that memorable day, plunging 508 points in the panicked rush to sell.What is the stock market, and how is it affected by the forces of supply and demand?

21、The stock market is the means through which previously issued corporate stocks, shares of ownership in a corporation, are traded. Stock exchanges are organizations whose members act as intermediaries to buy and sell stocks for their clients. About 80 percent of all stock trading in the United States

22、 takes place at the New York Stock Exchange. There are other stock exchanges in the United States as well as in Paris, London, Sydney and Tokyo.How are stock prices determined? The answer, as you might expect, is by supply and demand. However, the forces influencing the prices of corporate stocks ar

23、e quite different from those influencing the prices of goods and services. People and organizations that buy and hold stock do so for the incomes they hope to earn. The incomes depend on dividends paid to stock holders, changes in the price of stock over time, and the expected return on alternative

24、investments.On any given day in the stock market, there are orders to buy and orders to sell. The orders to buy constitute the quantity of a stock demanded at the current (or anticipated) price per share, while the orders to sell constitute the quantity supplied at that price. The chief influence on

25、 both the supply of and demand for stocks is the income potential of holding the stock com pared to the income potential of holding alternative assets such as bonds, other types of securities, or real property like buildings and land.On the New York Stock Exchange, trading in all stocks is continuou

26、s. A specialist is as signed to oversee trading in each stock. This specialist is a “brokers broker“ who tries to adjust the price of the stock so that quantity demanded equals quantity supplied. However, the specialist is also allowed to purchase the stock to hold as a personal investment if no buy

27、er can be found. In this way the specialist can exert some influence on the supply of and demand for stocks, and will do so if its profitable.On October 19, 1987, there were hardly any buy orders, and the markets were flooded with sell orders. Because of the tremendous surplus of stocks at the preva

28、iling prices, specialists and call clerks lowered prices until quantity demanded equaled quantity supplied. When Black Mon day finally reeled to a close, many a portfolio had lost over a fifth of the value it had the day be fore.（分数：6.00）(1).By the word “intermediaries“ (line 4, paragraph 2), the au

29、thor means _.A. connectionsB. messengersC. go-betweensD. spokesmen（分数：1.00）A.B.C.D.(2).Which of the following does not determine peoples incomes in stock market?A. Changes in the price of stock.B. Dividends paid to stockholders.C. The expected return on alternative investments.D. The supply of the s

30、tock.（分数：1.00）A.B.C.D.(3).Which of the following can not be considered as “alternative assets“ according to the passage?A. BuildingsB. StocksC. BondsD. Securities（分数：1.00）A.B.C.D.(4).Which of the following stock exchange centers are mentioned in the passage?A. Stock exchange centers in London, Sydne

31、y and Moscow.B. Stock exchange centers in Paris, London, Sydney.C. Stock exchange centers in Frankfurt, Paris, New York.D. Stock exchange centers in London, Tokyo, Hong Kong.（分数：1.00）A.B.C.D.(5).Which of the following is NOT the right description of stock market on October 19, 1987?A. The markets we

32、re flooded with sell orders.B. More than 600 million shares were traded on the New York Stock ExchangeC. The Dow Jones Industrial Average of the prices of 30 stocks of major US companies lost 22.6 percent of its valueD. Many a portfolio had lost a fifth of the value it had the day before.（分数：1.00）A.

33、B.C.D.(6).What might be the most appropriate title of the passage?A. Stock MarketB. Stock ExchangeC. Infamous “Black Monday“D. The Caprice Stock Market（分数：1.00）A.B.C.D.四、PART FOUR(总题数：1，分数：10.00)Function and Purpose of Stock MarketsThe stock market is one of the most important (21) . for companies t

34、o raise money. This allows businesses to be publicly (22) or raise additional financial capital for expansion by selling shares of ownership of the company in a public market. The (23) . that an exchange provides affords investors the ability to quickly and easily sell securities. This is an attract

35、ive feature of (24) . in stocks.Exchanges also act as the (25) . for each transaction, meaning that they collect and deliver the shares, and guarantee payment to the seller of a security. This eliminates the risk to an individual buyer or seller that the counterparty could (26) . on the transaction.

36、 The smooth functioning of all these activities facilitates economic growth in that lower costs. In this way the financial system is assumed to contribute to increased prosperity.History has shown that the price of shares and other (27) . is an important part of the dynamics of economic activity, an

37、d can influence or be an indicator of social mood. An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a countrys economic strength and development.(28) . share prices, for instance, ten

38、d to be associated with increased business investment and vice versa. Share prices also affect the wealth of households and their consumption. (29) central banks tend to keep an eye on the control and behavior of the stock market and, in (30) on the smooth operation of financial system functions.（分数

39、：10.00）(1).A. sources B. assistants C. reasons D. ways（分数：1.00）A.B.C.D.(2).A. bought B. traded C. conducted D. done（分数：1.00）A.B.C.D.(3).A. convenience B. liquidity C. superiority D. celerity（分数：1.00）A.B.C.D.(4).A. indulging B. engaging C. investing D. funding（分数：1.00）A.B.C.D.(5).A. clearinghouse B.

40、greenhouse C. whitehouse D. workhouse（分数：1.00）A.B.C.D.(6).A. counter B. breach C. default D. fail（分数：1.00）A.B.C.D.(7).A. exchanges B. transactions C. assets D. investments（分数：1.00）A.B.C.D.(8).A. Decreasing B. Steadying C. Learning D. Rising（分数：1.00）A.B.C.D.(9).A. However B. Besides C. Moreover D. Th

41、erefore（分数：1.00）A.B.C.D.(10).A. return B. general C. short D. fact（分数：1.00）A.B.C.D.五、PART FIVE(总题数：1，分数：10.00)Stock Market CrashesA stock market crash is often defined as a sharp dip in (31) . prices of equities listed on the stock exchanges. In parallel (32) . various economic factors, a reason for

42、 stock market crashes is also (33) . to panic and investing publics loss of confidence. Often, stock market crashes end speculative economic bubbles.There have been famous stock market crashes that have ended in the (34) . of billions of dollars and wealth destruction on a massive scale. An increasi

43、ng (35) . of people are involved in the stock market, especially since the social security and retirement plans are (36) . increasingly privatized and linked to stocks and bonds and other elements of the market. There have been a number of famous stock market crashes like the (37) . Street Crash of

44、1929, the stock market crash of 19734, the Black Monday of 1987, the Dot-corn bubble of 2000, and the Stock Market Crash of 2008.One of the most famous stock market crashes started October 24, 1929 on Black Thursday. The Dow Jones Industrial lost 50 % during this stock market crash. It was the begin

45、ning of the Great Depression. (38) . famous crash took place on October 19, 1987-Black Monday. The crash began in Hong Kong and quickly (39) . around the world. By the (40) . of October, stock markets in Hong Kong had fallen 45.5 % %, Australia 41.8 % %, Spain 31% %, the United Kingdom 26.4 % %, the

46、 United States 22.68 % %, and Canada 22.5 % %.（分数：10.00）填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_填空项 1:_六、PART SIX(总题数：1，分数：12.00)DisintermediationA Remarkable Transformation（分数：12.00）(1).The financial system in most western countries has been undergone a remarkable trans forma

47、tion. One feature of this development is disintermediation. A portion of the funds（分数：1.00）填空项 1:_(2).involved in saving and financing, it flows directly to the financial markets instead of being routed（分数：1.00）填空项 1:_(3).via the traditional bank lending and deposit to operations. The general public

48、 interest in investing（分数：1.00）填空项 1:_(4).in the stock market, either directly or through mutual funds, has been an important component of（分数：1.00）填空项 1:_(5).this process. Statistics show that in recent decades selling shares have made up an increasingly（分数：1.00）填空项 1:_(6).large proportion of households financial assets in many countries abroad. In the 1970s, in（分数：1.00）填空项 1:_(7).Sweden, deposit accounts and any other very liquid assets with little risk made up al most 60（分数：1.00）填空项 1:_