Q1. A primary market transaction involves: A) the direct trading of securities between institutional investors. B) the sale of new securities to investors. C) primarily preferred stocks.
Q2. Which of the following statements about bonds, indexes, markets, and market efficiency is least accurate? A) The bulk of all bond trading takes place on organized exchanges. B) A price-weighted index assumes the investor holds an equal number of shares of the stocks in the index. C) Tests of market efficiency find that stock exchange specialists derive above-average returns.
Q3. Which of the following statements about securities markets is least accurate? A) A market that features low transactions costs is said to have internal efficiency. B) In a continuous market, a security can trade any time the market is open. C) Initial public offerings (IPOs) are sold in the secondary market.
Q4. Which of the following is least likely a service provided by an underwriter in the primary market? A) Diversification. B) Origination. C) Risk Bearing.
Q5. Which of the following statements regarding primary and secondary markets is least accurate? A) Secondary market transactions occur between two investors and do not involve the firm that originally issued the security. B) Prevailing market prices are determined by primary market transactions and are used in pricing new issues. C) New issues of government securities can be sold on the primary market.
Q6. Which of the following statements about primary and secondary markets is least accurate? A) The proceeds from a sale in the secondary market go to the issuer. 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.
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发表于 2009-1-22 11:34
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