The primary securities markets are O a. the markets where financial assets such as stocks and bonds are initially issued O b. the three most important financial markets in any economy O c. the markets for stocks and bonds only O d. the markets for previously issued securities such as the SPSE
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- Which of the following are money market securities?I. Jumbo CDsII. Short-term municipal debtIII. U.S. Treasury billsIV. Commercial paper A. I and IV only B. II and III only C. I, II, and IV only D. II, III, and IV only E. I, II, III, and IVQ12. The following are commonly used plug items, except a. cash and marketable securities b. equity c. short-term debt d. long-term debt e. all of the choices1) The capital market consist of : A. Treasury bill B. Certificate of deposit C. Purchases agreement D. Common stock 2) The money market consist of: A. Certificate of deposit B. Common stock C. Ordinary share D. Preference stock 3) Which of the following is a characteristic of the money market? A. Long term B. High Risk C. High liquidity D. Poor liquidity 4) Which of the following is a characteristic of the capital market? A. Poor liquidity B. Low Risk C. Short Term D. Convertibility 5) The financial markets are classified as all following except: A. Debt market vs stock market B. Money market vs capital market C. Primary markets vs secondary market D. Future markets vs spot markets 6) An order to be executed at the best price available in the market: A. Limited order В. Market order C. Opening order D. Closing order
- The market provides price information on stocks not listed on a securities exchange. a. Securities exchange O b. Over-the-counter c. NYSE d. Primary e. SecondaryWhich one of the following is NOT a 'Money Market Instrument? Select one: O a. Treasury Bills O b. Certificate of Deposit O c. Equity Shares O d. Commercial Paper 10How would you calculate the cost of each security listed in Discussion Question 5 on page 526. Explain. Take the following list of securities and arrange them in order of their priority of claims: Preferred stock Subordinated stock common stock senior debenture senior secured debt junior secured debt
- 17- Securities newly issued are sold to investors in the _____ market and later soldbetween individual investors in the _____ market. a. Proxy, Auctionb. Initial: Seasonedc. Primary, Secondaryd. Outside; Insidee. Money, Capital24) Money Market instruments are: A. Common stock В. Preferred stock С. Loan stock D. Debt obligation 25) Commercial papers that are sold directly to investors by the issues are called: A. Dealer placed B. Direct placed C. Broker placed D. Institutional placed5- Identify the market where already issued securities such as equity shares are traded a. Commodity Market b. Fund market c. Secondary Market d. Primary Market
- Which of the following is an example of a money market instrument? (Select all that apply) a. 2-year Treasury Bond b. Certificate of Deposit C. Swap d. Stop-callYou have been provided the following data on the securities of three firms and the market: Security E[Ri] s.d (Ri) Corr(Ri, Rm) Beta i Firm one _____A____ _____B____ 1.0 0.85 Firm two _____C____ 0.18 0.7 _____D____ Firm three _____E____ 0.05 _____F_____ 0.8 The market 0.10 0.04 1.2 _____G_____ Risk-free asset 0.08 0 0 0 Assume that the CAPM and SML are true. Fill in the missing values in the table. (Show the calculation process and results)Marketable securities are a. long term in nature b. are examples of bonds c. traded in the money market d. traded in the capital market