Question 1

At NYSE, limit orders are usually entered into the specialist's limit order book.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not one of three major sources of active bids and offerings in a stock issue at a stock trading post on an exchange?

Accepted Answer

A)   floor brokers handling customer orders.
B)   limit price orders held by floor brokers.
C)   the specialists making trades for his/her own account.
D)   the specialist executing limit price orders.E) B) and C)
F) A) and D)

Question 3

The secondary market for capital market securities is important because it provides funds directly to deficit spending units.

Accepted Answer

A) True 
 B)False

Question 4

The underwriter's spread is inversely related to the size of the primary offering.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a reason for not listing a stock on an exchange?

Accepted Answer

A)   limited trading in the stock
B)   small issue size
C)   having excellent support by NASD dealers
D)   having a large number of public shareholdersE) None of the above
F) C) and D)

Question 6

Preferred stockholders have the same voting rights as common shareholders.

Accepted Answer

A) True 
 B)False

Exam 10: Equity Markets

Which of the following is not a reason for not listing a stock on an exchange?

Correct Answer
verified

The underwriter's spread is inversely related to the size of the primary offering.

Correct Answer
verified

The secondary market for capital market securities is important because it provides funds directly to deficit spending units.

Correct Answer
verified

At NYSE, limit orders are usually entered into the specialist's limit order book.

Correct Answer
verified

Preferred stockholders have the same voting rights as common shareholders.

Correct Answer
verified

Which of the following is not one of three major sources of active bids and offerings in a stock issue at a stock trading post on an exchange?

Correct Answer
verified

Exam 10: Equity Markets

Which of the following is not a reason for not listing a stock on an exchange?

Correct AnswerverifiedShow Answer

The underwriter's spread is inversely related to the size of the primary offering.

Correct AnswerverifiedShow Answer

The secondary market for capital market securities is important because it provides funds directly to deficit spending units.

Correct AnswerverifiedShow Answer

At NYSE, limit orders are usually entered into the specialist's limit order book.

Correct AnswerverifiedShow Answer

Preferred stockholders have the same voting rights as common shareholders.

Correct AnswerverifiedShow Answer

Which of the following is not one of three major sources of active bids and offerings in a stock issue at a stock trading post on an exchange?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified