Exam 2: Security Markets

Initial and annual listing fees are highest for _______________ -listed stocks.

Super Dot refers to the New York Stock Exchange's designated order transfer system, which allows NYSE member firms to electronically transmit all market and limit orders directly to the specialist at the trading post.

Full disclosure of all pertinent investment information in the sale of new securities is a provision of the:

Stocks traded over-the-counter, like through NASDAQ, have no centrally located market location.

The __________ is a futures market for common stock, while the ____________ is a futures market for commodities and financial instruments.

The Intercontinental Exchange (ICE) is now operating 24 hours per day using a computerized trading system.

The U.S. treasury often uses investment bankers to sell new issues of government securities.

From the investment banker's point of view, the major reason syndicates are formed in the distribution of large issues is for the purpose of:

In general, markets are efficient when:

NASDAQ is directly related to the operations of the NYSE.

When an investment bank sells securities on a best efforts basis, it assumes all risk of the offering.

Secondary markets include only organized exchanges such as the NYSE and the regional exchanges.

___________ has two major functions: to handle special orders, such as purchases with a price contingency, and to maintain continuous, liquid, orderly markets.

Creating prices for securities and allowing for liquidity are functions of:

According to insider trading rules of the SEC, securities analysts and financial writers may not trade on insider information, but these rules do not extend to relatives and friends.

Dual trading creates the following benefit:

Electronic communication networks (ECNs) automatically match buy and sell orders at specified prices, and orders are not routed to the floor of an exchange before processing.

Shelf registration is more popular with new bond offerings than with new stock offerings.

Secondary markets provide everything except:

There is concern by the SEC and Congress that dark pools create a two-tier market.