Question 1

Based on dollar volume of stocks and bonds, the NASDAQ is the second largest of all markets in the United States.

Accepted Answer

A) True 
 B)False

Question 2

One of the main reasons institutional investors like ECNs is that they allow anonymity in trading.

Accepted Answer

A) True 
 B)False

Question 3

A person who is registered to trade on an exchange, who owns a seat but is not an employee of any member firm is a:

Accepted Answer

A) commission broker. 
B) floor broker. 
C) registered trader. 
D) dealer. 
E) B and C 
A) commission broker. 
B) floor broker. 
C) registered trader. 
D) dealer. 
E) B and C

Question 4

The American Stock Exchange's main competitor in the options and futures markets is the New York Stock Exchange.

Accepted Answer

A) True 
 B)False

Question 5

The Securities Investor Protection Corporation (SIPC) was established to:

Accepted Answer

A) oversee the liquidation of brokerage firms, and insure an investor's accounts to a maximum value of $500,000 in case of bankruptcy by the broker. 
B) protect investors from corporate insider trading, and insure their accounts for $500,000 in case corporate fraud caused a company to go bankrupt. 
C) cover the total market loss on an investor's brokerage account in case of the bankruptcy of the broker. 
D) create an insurance pool for brokerage firms, so that if one firm went bankrupt, all investor losses would be covered out of the insurance pool. 
A) oversee the liquidation of brokerage firms, and insure an investor's accounts to a maximum value of $500,000 in case of bankruptcy by the broker. 
B) protect investors from corporate insider trading, and insure their accounts for $500,000 in case corporate fraud caused a company to go bankrupt. 
C) cover the total market loss on an investor's brokerage account in case of the bankruptcy of the broker. 
D) create an insurance pool for brokerage firms, so that if one firm went bankrupt, all investor losses would be covered out of the insurance pool.

Question 6

Underwriters are less concerned with the fees from their activities than simply the amount of dollars underwritten.

Accepted Answer

A) True 
 B)False

Question 7

The investment banker acts as a middleman in the process of raising new funds for corporations and governments.

Accepted Answer

A) True 
 B)False

Question 8

At the end of 2009, Citigroup (Smith Barney), JPMorgan, and Barclay's Capital were three of the top ranked investment bankers in the underwriting of both global and domestic equity issues.

Accepted Answer

A) True 
 B)False

Question 9

Bringing private companies public for the first time is called:

Accepted Answer

A) a private placement. 
B) an initial public offering (IPO). 
C) a secondary offering. 
D) a founders sale. 
E) a shelf registration. 
A) a private placement. 
B) an initial public offering (IPO). 
C) a secondary offering. 
D) a founders sale. 
E) a shelf registration.

Question 10

Efficient markets need not be liquid, as long as buyers and sellers can eventually get a fair price for the assets they trade.

Accepted Answer

A) True 
 B)False

Question 11

ECNs provide several advantages to investors. Which of the following is not an advantage?

Accepted Answer

A) They lower the cost of trading compared to organized exchanges with floor trading 
B) They let everyone know who is making the trade and at what price 
C) They provide the ability to trade after hours when the exchanges are closed 
D) They provide more price transparency than organized exchanges 
A) They lower the cost of trading compared to organized exchanges with floor trading 
B) They let everyone know who is making the trade and at what price 
C) They provide the ability to trade after hours when the exchanges are closed 
D) They provide more price transparency than organized exchanges

Question 12

A means of exchanging assets, which may or may not include a specified location, and in which the seller may or may not own the assets being sold, is called:

Accepted Answer

A) an organized exchange. 
B) an options market. 
C) a market. 
D) None of the above 
A) an organized exchange. 
B) an options market. 
C) a market. 
D) None of the above

Question 13

What are ECNs?

Accepted Answer

ECNs are electronic trading systems that

Question 14

A specialist is supposed to maintain an orderly market.

Accepted Answer

A) True 
 B)False

Question 15

If the DJIA declines by 10% in the time between 2:00-2:30 PM, a 30 minute halt to trading occurs.

Accepted Answer

A) True 
 B)False

Based on dollar volume of stocks and bonds, the NASDAQ is the second largest of all markets in the United States.

One of the main reasons institutional investors like ECNs is that they allow anonymity in trading.

A person who is registered to trade on an exchange, who owns a seat but is not an employee of any member firm is a:

The American Stock Exchange's main competitor in the options and futures markets is the New York Stock Exchange.

The Securities Investor Protection Corporation (SIPC) was established to:

Underwriters are less concerned with the fees from their activities than simply the amount of dollars underwritten.

The investment banker acts as a middleman in the process of raising new funds for corporations and governments.

At the end of 2009, Citigroup (Smith Barney), JPMorgan, and Barclay's Capital were three of the top ranked investment bankers in the underwriting of both global and domestic equity issues.

Bringing private companies public for the first time is called:

Efficient markets need not be liquid, as long as buyers and sellers can eventually get a fair price for the assets they trade.

ECNs provide several advantages to investors. Which of the following is not an advantage?

A means of exchanging assets, which may or may not include a specified location, and in which the seller may or may not own the assets being sold, is called:

What are ECNs?

A specialist is supposed to maintain an orderly market.

If the DJIA declines by 10% in the time between 2:00-2:30 PM, a 30 minute halt to trading occurs.

The Investment Setting

Participating in the Market

Investment Companies: Mutual Funds, Exchange-Traded Funds, Closed-End Funds, and Unit Investment Trusts

Economic Activity

Industry Analysis

Valuation of the Individual Firm

Financial Statement Analysis

Efficient Markets and Anomalies

Behavioral Finance and Technical Analysis

Bond and Fixed-Income Fundamentals

Principles of Bond Valuation and Investment

Convertible Securities and Warrants

Put and Call Options

Commodities and Financial Futures

Stock Index Futures and Options

A Basic Look at Portfolio Management and Capital Market Theory

Duration and Bond Portfolio Management

International Securities Markets

Investments in Real Assets

Alternative Investments: Private Equity and Hedge Funds

Measuring Risks and Returns of Portfolio Managers

A Comprehensive Analysis for Real Estate Investment Decisions

The Makeup of Institutional Investors

Filters

Exam 2: Security Markets

Based on dollar volume of stocks and bonds, the NASDAQ is the second largest of all markets in the United States.

One of the main reasons institutional investors like ECNs is that they allow anonymity in trading.

A person who is registered to trade on an exchange, who owns a seat but is not an employee of any member firm is a:

The American Stock Exchange's main competitor in the options and futures markets is the New York Stock Exchange.

The Securities Investor Protection Corporation (SIPC) was established to:

Underwriters are less concerned with the fees from their activities than simply the amount of dollars underwritten.

The investment banker acts as a middleman in the process of raising new funds for corporations and governments.

At the end of 2009, Citigroup (Smith Barney), JPMorgan, and Barclay's Capital were three of the top ranked investment bankers in the underwriting of both global and domestic equity issues.

Bringing private companies public for the first time is called:

Efficient markets need not be liquid, as long as buyers and sellers can eventually get a fair price for the assets they trade.

ECNs provide several advantages to investors. Which of the following is not an advantage?

A means of exchanging assets, which may or may not include a specified location, and in which the seller may or may not own the assets being sold, is called:

What are ECNs?

A specialist is supposed to maintain an orderly market.

If the DJIA declines by 10% in the time between 2:00-2:30 PM, a 30 minute halt to trading occurs.

The Investment Setting

Participating in the Market

Investment Companies: Mutual Funds, Exchange-Traded Funds, Closed-End Funds, and Unit Investment Trusts

Economic Activity

Industry Analysis

Valuation of the Individual Firm

Financial Statement Analysis

Efficient Markets and Anomalies

Behavioral Finance and Technical Analysis

Bond and Fixed-Income Fundamentals

Principles of Bond Valuation and Investment

Convertible Securities and Warrants

Put and Call Options

Commodities and Financial Futures

Stock Index Futures and Options

A Basic Look at Portfolio Management and Capital Market Theory

Duration and Bond Portfolio Management

International Securities Markets

Investments in Real Assets

Alternative Investments: Private Equity and Hedge Funds

Measuring Risks and Returns of Portfolio Managers

A Comprehensive Analysis for Real Estate Investment Decisions

The Makeup of Institutional Investors

Filters