1. Which of the following statements regarding stock trading is INCORRECT?
A. Stock that has priority for dividends and bankruptcy liquidation is called preferred stock.
B. Proxy voting is the voting procedure where shareholders grant authority to another individual to vote their shares.
C. Capital gains yield is a popular measure of dividend returns.
D. The short alphabetic abbreviation by which the stock is identified in the market is called the stock's ticker symbol.
2. Which statement is INCORRECT given the following Treasury quotes?
9/1/2033 5.750 148.6533 149.0013 -.8511 2.985
A. Although this bond's coupon rate is 5.75%, its yield-to-maturity is only 2.985%.
B. The bid price is 148.6533% of par.
C. The dealer is willing to sell this bond to you for $1,490.013.
D. This bond’s ask price on the previous trading day was lower than today's price by $8.511 (i.e., eight dollars and 51+ cents).