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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