Question: Hello please help me to answer this. thank you! Please submit correct answers. Thanks 1. Which of the following statements about securities markets is incorrect:
Hello please help me to answer this. thank you!
Please submit correct answers. Thanks
1. Which of the following statements about securities markets is incorrect:
the keep prices competitive among alternative security investments
securities are initially placed in the secondary market
they provide liquidity to investors
they aid in the allocation of capital
2.
1.Securitization is the process of pooling mortgages or other types of loans and selling the claims or securities against that pool in the secondary market. 2. Subprime mortgages are mortgage loans made to borrowers with high incomes and better than average credit histories
BOTH statements are false
1st statement is TRUE
1st statement is FALSE
BOTH statements are true
3. Parties that underwrite securities are called
investment bankers.
stockbrokers
dealers.
brokers.
4. A newly issued five-year security offered for sale by the issuing firm is classified as trading in both the
secondary market and the capital market.
primary market and the money market.
primary market and the capital market
secondary market and the money market.
5. The sale of a new security directly to an investor or a group of investors is called ________.
a capital market transaction
arbitraging
short selling
a private placement
6. Which one of the following best describes the role of a financial intermediary?
Financial intermediaries collect large surpluses from a few suppliers of capital and lend those funds in small amounts to numerous demanders of capital.
Suppliers of capital are hesitant to individually accept the credit risk associated with lending to demanders of capital.
A financial intermediary collects funds from the suppliers of capital and then distributes those funds to the demanders of capital.
Financial intermediaries match suppliers of capital with demanders of capital so they can directly exchange funds.
7. Primary determinants of a good security market include all of the following except
transparency.
a physical location.
liquidity.
efficient price discovery
8.
1. The issuing firm receives funds when its securities are traded in the secondary market.
2. A company can have only one IPO..
BOTH statements are true
1st statement is TRUE
1st statement is FALSE
BOTH statements are false
9.
1. An efficient market is a market that establishes correct prices for the securities that firms sell and allocates funds to their most productive use as a result of the intense competition among investors.
2.The Eurocurrency market is a market for short-term bank deposits denominated in U.S. dollars or other easily convertible currencies.
1st statement is TRUE
BOTH statements are true
BOTH statements are false
1st statement is FALSE
10. Long-term debt instruments used by both government and business are known as ________
bonds
equities
preferred stocks
T-bills
11. Markets may be said to be efficient when:
prices adjust rapidly to new information
all statements are correct
the market absorbs only small dollar amounts without destabilizing prices
there is a continuous market with successive trade at widely varying prices
12. It would be fair to say that securities markets in the future:
will become more competitive as an international market system develops
will be less automated than today's markets
will be less efficient
will be more highly segregated than they are today
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