1. Which of the following statements is incorrect regarding single stock futures?
a. Single stock futures are traded in the United States at OneChicago.
b. Single stock futures are regulated by the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission.
c. Single stock futures are available only on stocks of companies that are in the S&P 500 index.
d. All of the above are correct
e. Investors who expect a particular stock’s price to decline over time can sell futures contracts on that stock, or they can sell the stock short.
2. Private equity funds tend to use mostly _________ when acquiring stakes in businesses.
a. their equity from retaining earnings
b. their equity from issuing preferred stock
c. their equity from issuing common stock
d. borrowed funds