Chap013-Marketing,Management
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投资学题库Chap003投资学题库Chap003Chapter 03How Securities Are Traded Multiple Choice Questions1.The trading of stock that was previously issued takes placeA. i n the secondary market.B. i n the primary market.C. u sually with the assistance of an investment banker.D. i n the secondary and primary markets.2. A purchase of a new issue of stock takes placeA. i n the secondary market.B. i n the primary market.C. u sually with the assistance of an investment banker.D. i n the secondary and primary markets.E. i n the primary market and usually with the assistance of an investment banker.3-2Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent ofMcGraw-Hill Education.3.Firms raise capital by issuing stockA. i n the secondary market.B. i n the primary market.C. t o unwary investors.D. o nly on days when the market is up.4.Which of the following statements regarding the specialist are true?A. S pecialists maintain a book listing outstandingunexecuted limit orders.B. S pecialists earn income from commissions and spreads in stock prices.C. S pecialists stand ready to trade at quoted bid and ask prices.D. S pecialists cannot trade in their own accounts.E. S pecialists maintain a book listing outstanding unexecuted limit orders, earn income fromcommissions and spreads in stock prices, and stand ready to trade at quoted bid and ask prices.5.Investment bankersA. a ct as intermediaries between issuers of stocks and investors.B. a ct as advisors to companies in helping them analyze their financial needs and find buyers fornewly issued securities.C. a ccept deposits from savers and lend them out to companies.D. a ct as intermediaries between issuers of stocks and investors and act as advisors to companiesin helping them analyze their financial needs and find buyers for newly issued securities.3-3Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent ofMcGraw-Hill Education.6.In a "firm commitment," the investment bankerA. b uys the stock from the company and resells the issue to the public.B. a grees to help the firm sell the stock at a favorable price.C. f inds the best marketing arrangement for the investment banking firm.D. a grees to help the firm sell the stock at a favorable price and finds the best marketingarrangement for the investment banking firm.7.The secondary market consists ofA. t ransactions on the AMEX.B. t ransactions in the OTC market.C. t ransactions through the investment banker.D. t ransactions on the AMEX and in the OTC market.E. t ransactions on the AMEX, through the investment banker, and in the OTC market.8.Initial margin requirements are determined byA. t he Securities and Exchange Commission.B. t he Federal Reserve System.C. t he New York Stock Exchange.D. t he Federal Reserve System and the New York Stock Exchange.3-4Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent ofMcGraw-Hill Education.9.You purchased JNJ stock at $50 per share. The stock is currently selling at $65. Your gains may beprotected by placing aA. s top-buy order.B. l imit-buy order.C. m arket order.D. l imit-sell order.E. N one of the options10.You sold JCP stock short at $80 per share. Your losses could be minimized by placing aA. l imit-sell order.B. l imit-buy order.C. s top-buy order.D. d ay-order.E. N one of the options11.Which one of the following statements regarding orders is false?A. A market order is simply an order to buy or sell a stock immediately at the prevailing marketprice.B. A limit-sell order is where investors specify prices at which they are willing to sell a security.C. I f stock ABC is selling at $50, a limit-buy order may instruct the broker to buy the stock if andwhen the share price falls below $45.D. A market order is an order to buy or sell a stock on a specific exchange (market).3-5Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent ofMcGraw-Hill Education.。