投资学题库Chap003

投资学题库Chap003
投资学题库Chap003
Chapter 03
How Securities Are Traded Multiple Choice Questions
1.The trading of stock that was previously issued takes place
A. 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 place
A. 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.
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McGraw-Hill Education.
3.Firms raise capital by issuing stock
A. 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 outstanding
unexecuted 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 from
commissions and spreads in stock prices, and stand ready to trade at quoted bid and ask prices.
5.Investment bankers
A. 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 for
newly 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 companies
in helping them analyze their financial needs and find buyers for newly issued securities.
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McGraw-Hill Education.
6.In a "firm commitment," the investment banker
A. 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 marketing
arrangement for the investment banking firm.
7.The secondary market consists of
A. 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 by
A. 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.
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McGraw-Hill Education.
9.You purchased JNJ stock at $50 per share. The stock is currently selling at $65. Your gains may be
protected by placing a
A. s top-buy order.
B. l imit-buy order.
C. m arket order.
D. l imit-sell order.
E. N one of the options
10.You sold JCP stock short at $80 per share. Your losses could be minimized by placing a
A. l imit-sell order.
B. l imit-buy order.
C. s top-buy order.
D. d ay-order.
E. N one of the options
11.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 market
price.
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 and
when the share price falls below $45.
D. A market order is an order to buy or sell a stock on a specific exchange (market).
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Copyright ? 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.。