3-1Copyright©2017McGraw-HillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGraw-HillEducation.Chapter03TestBank-StaticStudent:___________________________________________________________________________MultipleChoiceQuestions1.ThetradingofstockthatwaspreviouslyissuedtakesplaceA.inthesecondarymarket.B.intheprimarymarket.C.usuallywiththeassistanceofaninvestmentbanker.D.inthesecondaryandprimarymarkets.2.ApurchaseofanewissueofstocktakesplaceA.inthesecondarymarket.B.intheprimarymarket.C.usuallywiththeassistanceofaninvestmentbanker.D.inthesecondaryandprimarymarkets.E.intheprimarymarketandusuallywiththeassistanceofaninvestmentbanker.3.FirmsraisecapitalbyissuingstockA.inthesecondarymarket.B.intheprimarymarket.C.tounwaryinvestors.D.onlyondayswhenthemarketisup.4.Whichofthefollowingstatementsregardingthespecialistaretrue?A.Specialistsmaintainabooklistingoutstanding,unexecutedlimitorders.B.Specialistsearnincomefromcommissionsandspreadsinstockprices.C.Specialistsstandreadytotradeatquotedbidandaskprices.D.Specialistscannottradeintheirownaccounts.E.Specialistsmaintainabooklistingoutstanding,unexecutedlimitorders,earnincomefromcommissionsandspreadsinstockprices,andstandreadytotradeatquotedbidandaskprices.5.InvestmentbankersA.actasintermediariesbetweenissuersofstocksandinvestors.B.actasadvisorstocompaniesinhelpingthemanalyzetheirfinancialneedsandfindbuyersfornewly-issuedsecurities.C.acceptdepositsfromsaversandlendthemouttocompanies.D.actasintermediariesbetweenissuersofstocksandinvestorsandactasadvisorstocompaniesinhelpingthemanalyzetheirfinancialneedsandfindbuyersfornewly-issuedsecurities.6.Ina"firmcommitment,"theinvestmentbankerA.buysthestockfromthecompanyandresellstheissuetothepublic.B.agreestohelpthefirmsellthestockatafavorableprice.C.findsthebestmarketingarrangementfortheinvestment-bankingfirm.D.agreestohelpthefirmsellthestockatafavorablepriceandfindsthebestmarketingarrangementfortheinvestment-bankingfirm.3-2Copyright©2017McGraw-Hill...
