答案和详解如下： 1.Which of the following statements regarding secondary markets is FALSE? Secondary markets are important because they provide: A) investors with liquidity. B) investors with continuous information. C) firms with greater access to external capital. D) regulators with information about market participants. The correct answer was D) Secondary markets are important because they provide liquidity and continuous information to investors. The liquidity of the Secondary markets adds value to both the investor and firm because more investors are willing to buy issues in the primary market, when they know these issues will later become liquid in the secondary market. Therefore, the secondary market makes it easier for firms to raise external capital.
2.Which of the following is a difference between primary and secondary capital markets?
A) Primary capital markets relate to the sale of new issues of bonds, preferred, and common stock, while secondary capital markets are where securities trade after their initial offering. B) Primary markets are where stocks trade while secondary markets are where bonds trade. C) Both primary and secondary markets relate to where stocks and bonds trade after their initial offering. D) Secondary capital markets relate to the sale of new issues of bonds, preferred, and common stock, while primary capital markets are where securities trade after their initial offering. The correct answer was A) Bonds and stocks are traded on both the primary and secondary markets.
3.Which of the following statements about primary and secondary markets is FALSE?
A) The proceeds from a sale in the secondary market go to the issuing unit, not the current owner of the security. B) A primary market is a market in which new securities are sold. C) The primary market benefits from the liquidity provided by the secondary market. D) A secondary market is a market in which existing securities are traded among investors. The correct answer was A) Proceeds in a primary market go to the issuing firm less flotation costs if any. Proceeds in the secondary market go directly to the current owner or seller of the securities.
4.Which of the following statements regarding primary and secondary markets is FALSE?
A) Secondary market transactions occur between two investors and do not involve the firm that originally issued the security. B) Secondary market transactions support primary market transactions by providing a means of liquidity to investors that wish to sell their security holdings. C) New issues of government securities can be sold on the primary market. D) Prevailing market prices are determined by primary market transactions and are used in pricing new issues. The correct answer was D) Prevailing market prices are determined by the transactions that take place on the secondary market. This information is used to determine the price of new issues sold on primary markets.
5.Which of the following is NOT a service provided by an underwriter in the primary market?
A) Origination. B) Risk Bearing. C) Diversification. D) Distribution. The correct answer was C) The underwriter provides the following services to the issuer: Origination, which involves the design, planning, and registration of the issue. Risk bearing, which means the underwriter guarantees the price by purchasing the securities. Distribution, which is the sale of the issue. | 
发表于 2008-4-4 17:33
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