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Reading 52: Organization and Functioning that Securities Ma <打印本页>作者: cfaedu 时间: 2008-4-4 17:33 标题: <2008> conference 13 - analysis 52: Organization and Functioning of Securities Ma

1.Which of the complying with statements regarding secondary markets is FALSE? second markets space important due to the fact that they provide:

A) investors v liquidity.

You are watching: What statement about primary and secondary markets is true?

B) investor with continuous information.

C) firms with greater access to exterior capital.

D) regulators v information around market participants.

2.Which the the following is a difference in between primary and secondary capital markets?

A) Primary funding markets relate come the sale of brand-new issues that bonds, preferred, and common stock, while second capital markets are whereby securities trade after your initial offering.

B) Primary industries are whereby stocks profession while an additional markets space where bond trade.

C) Both main and secondary markets said to where stocks and bonds trade after their initial offering.

D) second capital industries relate to the sale of new issues that bonds, preferred, and also common stock, while primary funding markets room where securities trade after your initial offering.

3.Which of the following statements about primary and second markets is FALSE?

A) The proceeds from a revenue in the an additional market walk to the issuing unit, no the existing owner that the security.

B) A primary sector is a sector in which brand-new securities space sold.

C) The primary industry benefits from the liquidity provided by the second market.

D) A second market is a market in which existing securities are traded amongst investors.

4.Which that the following statements concerning primary and second markets is FALSE?

A) secondary market transactions occur between two investors and also do not involve the for sure that initially issued the security.

B) secondary market transactions assistance primary market transactions by offering a method of liquidity to investors the wish to market their defense holdings.

C) new issues of federal government securities can be marketed on the main market.

D) Prevailing sector prices are identified by primary market transactions and also are offered in pricing new issues.

5.Which of the adhering to is NOT a service detailed by one underwriter in the primary market?

A) Origination.

B) danger Bearing.

C) Diversification.

D) Distribution.

作者: cfaedu 时间: 2008-4-4 17:34

答案和详解如下:

1.Which that the complying with statements regarding secondary markets is FALSE? an additional markets space important because they provide:

A) investors v liquidity.

B) investors with continuous information.

C) firms with greater accessibility to external capital.

D) regulators with information about market participants.

The correct answer was D)

Secondary industries are important because they provide liquidity and continuous information to investors. The liquidity the the secondary markets adds value to both the investor and firm because much more investors are willing come buy issues in the primary market, as soon as they understand these problems will later come to be liquid in the second market. Therefore, the second market renders it simpler for firms to raise exterior capital.

2.Which of the following is a difference between primary and secondary capital markets?

A) Primary resources markets relate to the revenue of new issues the bonds, preferred, and common stock, while an additional capital industries are where securities trade after their initial offering.

B) Primary markets are where stocks profession while an additional markets are where bond trade.

C) Both main and secondary markets relate to whereby stocks and also bonds trade after your initial offering.

D) secondary capital industries relate to the revenue of brand-new issues of bonds, preferred, and common stock, when primary funding markets room where securities profession after their initial offering.

The exactly answer was A)

Bonds and also stocks space traded top top both the main and an additional markets.

3.Which that the complying with statements about primary and second markets is FALSE?

A) The proceeds from a sale in the second market walk to the issuing unit, no the present owner the the security.

B) A primary market is a market in which new securities space sold.

C) The primary industry benefits from the liquidity detailed by the an additional market.

D) A second market is a industry in i m sorry existing securities room traded amongst investors.

The correct answer was A)

Proceeds in a primary market go come the issuing firm much less flotation expenses if any. Proceeds in the secondary market go straight to the existing owner or seller that the securities.

4.Which that the following statements concerning primary and secondary markets is FALSE?

A) secondary market transactions occur in between two investors and also do no involve the certain that originally issued the security.

B) secondary market transactions assistance primary sector transactions by providing a way of liquidity to investors that wish to offer their security holdings.

C) brand-new issues of federal government securities deserve to be sold on the main market.

D) Prevailing industry prices are established by primary market transactions and also are supplied in pricing new issues.

The correct answer was D)

Prevailing market prices are figured out by the transactions the take place on the an additional market. This info is used to identify the price of new issues marketed on main markets.

5.Which of the adhering to is NOT a service noted by one underwriter in the major market?

A) Origination.

B) danger Bearing.

C) Diversification.

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D) Distribution.

The exactly answer was C)

The underwriter offers the complying with services come the issuer:

 Origination, which involves the design, planning, and also registration of the issue.

 risk bearing, which means the underwriter assures the price by purchasing the securities.

 Distribution, i beg your pardon is the sale of the issue.