金融学(双语)复习资料第3章

Chapter 3
SECURITIES MARKETS
TRUE/FALSE
F 1. The major function of the New York Stock Exchange is
to raise funds for corporations.
F 2. The SEC sets the margin requirement.
F 3. If a stock is quoted 10-11, an investor can sell
the stock for $11 a share.
T 4. Stocks not traded on an organized exchange are traded
over-the-counter (e.g., the Nasdaq stock market).
T 5. A brokerage firm that offers to buy and sell a stock
at specified bid and ask prices is "making a market."
T 6. A "specialist" makes a market in stocks traded on an organized exchange.
T 7. Investors are protected from failures of brokerage firms
by the Securities Investor Protection Corporation.
F 8. In a short sale investors sell stock they own with the intention to buy it back within a short period of time.
T 9. Short sellers profit when security prices decline.
F 10. The larger the margin requirement, the greater the
proportion of a stock purchase the investor may borrow.
F 11. NYSE is a system for providing bid and ask prices for
over-the-counter (OTC) stocks.
T 12. The efficient market hypothesis suggests that investors should not expect to outperform the market.
T 13. The American Stock Exchange is an example of a secondary market.
F 14. A purchase of 50 shares is an example of an even lot.
F 15. The person who makes a market in a stock traded on the NYSE is called a dealer.
T 16. After investors purchase securities, they must make payment by the settlement date.
F 17. The margin requirement for stocks is set by the Federal Reserve.
T 18. The use of margin increases the potential percentage return on an investment in stock.
F 19. Securities markets are often inefficient, so investors can anticipate beating the market over a period of years.
T 20. Stock prices tend to adjust rapidly to new information. MULTIPLE CHOICE
c 1. The regulation of security markets
a. protects investors from poor investments
b. is enforced by the Federal Reserve
c. is enforced by the SEC
d. applies only to government securities
c 2. Organize
d securities markets
a. are examples of financial intermediaries
b. transfer resources from savers to borrowers
c. are secondary markets
d. are not subject to regulation
b 3. The individual (or firm) who makes a market
1. guarantees to buy at specified (bid) prices
2. guarantees to buy at specified (ask) prices
3. guarantees to sell at specified (bid) prices
4. guarantees to sell at specified (ask) prices
a. 1 and 3
b. 1 and 4
c. 2 and 3
d. 2 and 4
d 4. Th
e minimum margin requirement is established by
a. brokerage firms
b. Congress
c. the SEC
d. the Federal Reserve
b 5. If an investor sells short, the individual
1. sells borrowed securities
2. sells securities from his or her portfolio
3. anticipates a price increase
4. anticipates a price decrease
a. 1 and 3
b. 1 and 4
c. 2 and 3
d. 2 and 4
c 6. American Depository Receipts
1. represent American securities traded abroad
2. represent foreign stocks traded in the United States
3. facilitate trading in foreign stocks
4. facilitate trading in American securities
a. 1 and 3
b. 1 and 4
c. 2 and 3
d. 2 and 4
d 7. Th
e efficient market hypothesis suggests
1. American securities markets are not competitive
2. American securities markets are very competitive
3. investors can expect to outperform the market
4. investors cannot expect to outperform the market
a. 1 and 3
b. 1 and 4
c. 2 and 3
d. 2 and 4
a 8. In an efficient market, security prices
a. adjust rapidly to new information
b. adjust slowly to new information
c. poorly value a firm's future prospects
d. indicate that the firm is overvalued
c 9. If an individual buys stock on margin an
d its pric
e rises,
a. the investor must put up additional collateral
b. the investor must pay tax on the unrealized gain
c. the investor must pay interest on the borrowed funds
d. the investor may take delivery of the stock
b 10. Efficient securities markets imply that
a. investors cannot outperform the market
b. investors cannot expect to outperform the market
c. security prices are randomly determined
d. there is little risk of loss over an extended investment horizon
d 11. An investor may plac
e a limit order that
a. limits the amount of commissions
b. specifies when the stock will be purchased
c. establishes the exchange on which the security
is to be bought or sold
d. states a price at which the investor seeks to
buy or sell the stock
d 12. A specialist
a. stresses one type of investment
b. only buys stock
c. analyzes corporate securities
d. makes a market in securities
b 13. The New York Stock Exchange
a. is a financial intermediary
b. is a secondary market
c. transfers funds to businesses
d. forbids buying stock on margin
b 14. If the quote on a stock is reduced,
1. supply exceeded demand
2. demand exceeded supply
3. some potential buyers leave the market
4. some potential buyers enter the market
a. 1 and 3
b. 1 and 4
c. 2 and 3
d. 2 and 4
d 15. Entering a sell order at $18.50 when th
e bid is 18-19
a. is a market order
b. illustrates a short sale
c. requires a margin payment
d. is a limit order
d 16. Buying stock on margin
1. is an example of financial leverage
2. is buying stock with borrowed funds
3. requires leaving the stock with the broker
a. 1 and 2
b. 1 and 3
c. 2 and 3
d. all three
a 17. Over-the-counter stock quotes are obtained through
a. Nasdaq
b. SEC
c. SIPC
d. FDIC
c 18. The efficient market hypothesis
a. suggests that the market for securities is becoming
less efficient
b. implies that investor can consistently outperform
the market
c. is built upon competition and the rapid dissemination of information
d. suggests that security prices change slowly over time d 19. Which of the following is inconsistent with efficient securities markets?
a. stock prices change rapidly in response to new
information
b. investors cannot expect to outperform the market
consistently
c. bond prices change rapidly in response to new
information
d. analysis of financial data will lead to superior
investment performance。