You have just purchased shares of stock from a stockbroker. These shares were previously traded on the NYSE. This trade took place in the
A) primary market. B) secondary market.
C) tertiary market.
D) quaternary market.
E) none of the above.
B) secondary market.
You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange. This trade took place in the
A) over-the-counter market. B) NYSE.
C) AMEX.
D) primary market.
E) none of the above.
A) over-the-counter market.
IBM went to a(n) ________ who served as a(n) ________ to sell an IPO in the primary markets. A) underwriter; investment broker
B) underwriter; investment banker C) investment broker; underwriter D) investment banker; underwriter
E) investment banker; unde
D) investment banker; underwriter
A(n) ________ is a legal document that describes a securities issue and is made available to potential investors.
A) disclosure statement B) offering contract
C) prospectus D) tombstone
E) none of the above
C) prospectus
A(n) ________ advertisement provides a listing of the underwriting syndicate involved in a new offering.
A) prospectus
B) underwriting notification
C) brokerage notification D) tombstone
E) none of the above
D) tombstone
IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them. This service is called
A) stock brokerage.
B) full-service brokerage.
C) underwriting. D) churning.
E) none of the above.
C) underwriting
ABC Corporation is selling additional shares of common stock. Although ABC Corporation has already sold shares of stock in the public equity markets, these are new shares of stock, and have never been sold or traded previously. This is called a(n)
A) init
B) seasoned new issue.
ABC Corporation is selling additional shares of common stock. These are new shares of stock, and have never been sold or traded previously. The selling of these shares would take place in the ________ market.
A) primary B) secondary
C) tertiary
D) quatern
A) primary
Securities that are less frequently traded, along with many new and high-tech stocks, are relegated to the
A) NYSE. B) AMEX. C) ADR market. D) OTC market.
D) OTC market.
Most of the bonds that are bought and sold are not transacted on the organized exchanges. They are bought and sold through bond dealers who do not sell many ________ bonds but do trade many ________ bonds in the secondary market.
A) corporate; government
A) corporate; government
You have just recently started your investment activities for retirement. You were happy to learn from your broker that your investor?s account balance would be insured for up to $500,000 through the ________ in the event their brokerage firm goes bankrup
D) SIPC
The two major organized stock exchanges in the Unites States are the ________ and the ________.
A) AMEX; Chicago B) NYSE; AMEX
C) NYSE; Chicago D) NYSE; Pacific
E) AMEX; Pacific
B) NYSE; AMEX
You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio. You will most likely purchase them
A) directly from a bond dealer.
B) with your broker acting as intermediary.
C) directly from the issuing institution.
D)
B) with your broker acting as intermediary.
The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange ________ and the over-the-counter transactions ________.
A) are initial offerings; are seasoned issues B) are seasoned
C) take place in a physical building; are conducted over the phone or via a computer
Patti DeVry has been trading stocks in the over-the-counter market. When she wants to sell her stocks she will specify the ________ price and when she wants to purchase stocks she will specify the ________ price.
A) ask on offer; bid B) bid; ask on offer
A) ask on offer
General Electric is the only stock originally listed and still remaining on the ?Big Board.? This means that its stock is traded on the
A) NASDAQ. B) NYSE.
C) Regional. D) AMEX.
E) International
B) NYSE.
Acting upon assumed good advice, your brother buys stock in I-Link, an upcoming communications firm. Since this is the first time I-Link is trading its stock, your brother will be involved in a(n)
A) secondary market transaction. B) initial public offerin
B) initial public offering.
Gracie Johnson saw the securities announcement for New York Bagel Enterprises that provided the details of the offering and a listing of the underwriting syndicate. She saw the
A) tombstone advertisement. B) prospectus.
C) initial post.
D) exchange advert
A) tombstone advertisement
The two types of securities offerings in the primary markets are ________ and ________. A) seasoned new issues; long-term bonds
B) long-term bonds; government bills and notes C) initial public offerings; seasoned new issues D) seasoned new issues; penny s
C) initial public offerings; seasoned new issues
All of the following are true about the American Stock Exchange except
A) it is the second most important of the organized exchanges. B) it is one of the secondary markets.
C) its trading volume is a small fraction of that of the NYSE. D) its dollar volum
D) its dollar volume is larger than all the regional exchanges.
Jeffery is an underwriter and sells shares on the ________ market for his job. However, in his personal investment life, he will purchase his stocks through the ________ market.
A) primary, secondary B) secondary, primary
C) primary, bond D) open, closed
A) primary, secondary
Jordan has a few thousand dollars to invest. He wants to find newly issued stock of a fast - growing new company. He will contact an underwriter and attempt to purchase the shares in the ________ market.
A) secondary
B) New York Stock Exchange
C) primary
C) primary
Securities are generally sold in the primary markets with the help of a(n) ________ serving as a(n) ________.
A) individual investor; underwriter B) corporation; investment banker
C) regulatory commission; individual investor D) underwriter; regulatory co
E) investment banker; underwriter
Securities include both ________ and ________. A) stocks; mutual funds
B) bonds; mutual funds C) real estate; stocks
D) stocks; bonds
E) bonds; money market funds
D) stocks; bonds
Much of the day-to-day regulation of the market is left to the securities industry and is performed by the exchanges and the
A) SRC. B) FDIC. C) OTC. D) SIPC. E) FINRA.
E) FINRA.
A(n) ________ is a marketable document (a receipt) that certifies a bank holds shares of a foreign firm?s stock that backs the receipt.
A) FINRA B) MDR C) FFS D) ADR
D) ADR
The Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Enforcement Act of 1988 made it illegal to trade while in the possession of inside information, or ?material? non-public information held by
A) officers. B) directors.
D) All of the above are correct.
What is the purpose of a circuit breaker for the market?
A) It prevents the market from declining in value.
B) It prevents investors from losing money in the market.
C) It temporarily stops computerized trading to allow investors to analyze the extraordin
C) It temporarily stops computerized trading to allow investors to analyze the extraordinary
market swings.
You have just purchased shares of stock from a stockbroker. These shares were previously traded on the NYSE. This trade took place in the
A) primary market. B) secondary market.
C) tertiary market.
D) quaternary market.
E) none of the above.
B) secondary market.
You just concluded a stock purchase transaction via a computer hookup rather than in an organized exchange. This trade took place in the
A) over-the-counter market. B) NYSE.
C) AMEX.
D) primary market.
E) none of the above.
A) over-the-counter market.
IBM went to a(n) ________ who served as a(n) ________ to sell an IPO in the primary markets. A) underwriter; investment broker
B) underwriter; investment banker C) investment broker; underwriter D) investment banker; underwriter
E) investment banker; unde
D) investment banker; underwriter
A(n) ________ is a legal document that describes a securities issue and is made available to potential investors.
A) disclosure statement B) offering contract
C) prospectus D) tombstone
E) none of the above
C) prospectus
A(n) ________ advertisement provides a listing of the underwriting syndicate involved in a new offering.
A) prospectus
B) underwriting notification
C) brokerage notification D) tombstone
E) none of the above
D) tombstone
IBM is considering hiring an investment banker who will purchase and subsequently resell an issue of stock for them. This service is called
A) stock brokerage.
B) full-service brokerage.
C) underwriting. D) churning.
E) none of the above.
C) underwriting
ABC Corporation is selling additional shares of common stock. Although ABC Corporation has already sold shares of stock in the public equity markets, these are new shares of stock, and have never been sold or traded previously. This is called a(n)
A) init
B) seasoned new issue.
ABC Corporation is selling additional shares of common stock. These are new shares of stock, and have never been sold or traded previously. The selling of these shares would take place in the ________ market.
A) primary B) secondary
C) tertiary
D) quatern
A) primary
Securities that are less frequently traded, along with many new and high-tech stocks, are relegated to the
A) NYSE. B) AMEX. C) ADR market. D) OTC market.
D) OTC market.
Most of the bonds that are bought and sold are not transacted on the organized exchanges. They are bought and sold through bond dealers who do not sell many ________ bonds but do trade many ________ bonds in the secondary market.
A) corporate; government
A) corporate; government
You have just recently started your investment activities for retirement. You were happy to learn from your broker that your investor?s account balance would be insured for up to $500,000 through the ________ in the event their brokerage firm goes bankrup
D) SIPC
The two major organized stock exchanges in the Unites States are the ________ and the ________.
A) AMEX; Chicago B) NYSE; AMEX
C) NYSE; Chicago D) NYSE; Pacific
E) AMEX; Pacific
B) NYSE; AMEX
You and your spouse have decided to incorporate bonds into your newly-formed retirement portfolio. You will most likely purchase them
A) directly from a bond dealer.
B) with your broker acting as intermediary.
C) directly from the issuing institution.
D)
B) with your broker acting as intermediary.
The difference between an organized exchange and an over-the-counter market is that the transactions that occur on an organized exchange ________ and the over-the-counter transactions ________.
A) are initial offerings; are seasoned issues B) are seasoned
C) take place in a physical building; are conducted over the phone or via a computer
Patti DeVry has been trading stocks in the over-the-counter market. When she wants to sell her stocks she will specify the ________ price and when she wants to purchase stocks she will specify the ________ price.
A) ask on offer; bid B) bid; ask on offer
A) ask on offer
General Electric is the only stock originally listed and still remaining on the ?Big Board.? This means that its stock is traded on the
A) NASDAQ. B) NYSE.
C) Regional. D) AMEX.
E) International
B) NYSE.
Acting upon assumed good advice, your brother buys stock in I-Link, an upcoming communications firm. Since this is the first time I-Link is trading its stock, your brother will be involved in a(n)
A) secondary market transaction. B) initial public offerin
B) initial public offering.
Gracie Johnson saw the securities announcement for New York Bagel Enterprises that provided the details of the offering and a listing of the underwriting syndicate. She saw the
A) tombstone advertisement. B) prospectus.
C) initial post.
D) exchange advert
A) tombstone advertisement
The two types of securities offerings in the primary markets are ________ and ________. A) seasoned new issues; long-term bonds
B) long-term bonds; government bills and notes C) initial public offerings; seasoned new issues D) seasoned new issues; penny s
C) initial public offerings; seasoned new issues
All of the following are true about the American Stock Exchange except
A) it is the second most important of the organized exchanges. B) it is one of the secondary markets.
C) its trading volume is a small fraction of that of the NYSE. D) its dollar volum
D) its dollar volume is larger than all the regional exchanges.
Jeffery is an underwriter and sells shares on the ________ market for his job. However, in his personal investment life, he will purchase his stocks through the ________ market.
A) primary, secondary B) secondary, primary
C) primary, bond D) open, closed
A) primary, secondary
Jordan has a few thousand dollars to invest. He wants to find newly issued stock of a fast - growing new company. He will contact an underwriter and attempt to purchase the shares in the ________ market.
A) secondary
B) New York Stock Exchange
C) primary
C) primary
Securities are generally sold in the primary markets with the help of a(n) ________ serving as a(n) ________.
A) individual investor; underwriter B) corporation; investment banker
C) regulatory commission; individual investor D) underwriter; regulatory co
E) investment banker; underwriter
Securities include both ________ and ________. A) stocks; mutual funds
B) bonds; mutual funds C) real estate; stocks
D) stocks; bonds
E) bonds; money market funds
D) stocks; bonds
Much of the day-to-day regulation of the market is left to the securities industry and is performed by the exchanges and the
A) SRC. B) FDIC. C) OTC. D) SIPC. E) FINRA.
E) FINRA.
A(n) ________ is a marketable document (a receipt) that certifies a bank holds shares of a foreign firm?s stock that backs the receipt.
A) FINRA B) MDR C) FFS D) ADR
D) ADR
The Insider Trading Sanctions Act of 1984 and the Insider Trading and Securities Fraud Enforcement Act of 1988 made it illegal to trade while in the possession of inside information, or ?material? non-public information held by
A) officers. B) directors.
D) All of the above are correct.
What is the purpose of a circuit breaker for the market?
A) It prevents the market from declining in value.
B) It prevents investors from losing money in the market.
C) It temporarily stops computerized trading to allow investors to analyze the extraordin
C) It temporarily stops computerized trading to allow investors to analyze the extraordinary
market swings.