Question 1

The largest electronic screen-based equity securities market in the U.S.is known as:

Accepted Answer

A)  Pink Sheets
B)  Instinet
C)  Amex
D)  NASDAQE) B) and C)
F) C) and D)

Question 2

Why do the DJIA and the S&P 500 have a high correlation?

Accepted Answer

Because both are cal...

Question 3

Most secondary bond trading takes place on:

Accepted Answer

A)  the NYSE
B)  the American Stock Exchange
C)  the OTC
D)  the Philadelphia ExchangeE) A) and B)
F) C) and D)

Question 4

Orders on Nasdaq come from market makers,ECNs and on-line brokers.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements regarding the Nasdaq Stock Market is not true?

Accepted Answer

A)  It was less affected by the 2000-2002 market decline than the NYSE
B)  NASDAQ dealers make a market by standing ready to buy and sell securities
C)  Stocks listed on the NYSE may also trade on NASDAQ
D)  NASDAQ's electronic trading system provides instantaneous transactionsE) None of the above
F) C) and D)

Question 6

Investment bankers are compensated by:

Accepted Answer

A)  the underwriting spread
B)  commissions paid by the buyers of the security
C)  commission paid by the sellers of the security
D)  guaranteed investment contractsE) B) and D)
F) All of the above

Question 7

According to its website,NYSE Euronext accounts for nearly what percent of the world's publicly traded equity securities?

Accepted Answer

A)  nearly 25%
B)  nearly 33%
C)  nearly 40%
D)  nearly 50%E) All of the above
F) None of the above

Question 8

What is the Nasdaq National Market System?

Accepted Answer

The Nasdaq/NMS,which is a comp...

Question 9

The S&P 500 comprises approximately ________________ percent of the market capitalization of all U.S.publicly traded companies.

Accepted Answer

The answer of The S&P 500 comprises approximately ________________ percent...

Question 10

What factors does the NYSE consider important in determining if a company should be listed on the exchange?

Accepted Answer

The exchange pays close attent...

Question 11

NASDAQ tends to list stocks concentrated in this industry: to be concentrated in these two industries:

Accepted Answer

A)  aerospace.
B)  energy.
C)  technology.
D)  telecommunications.E) B) and D)
F) A) and C)

Question 12

Investment bankers operate in the:

Accepted Answer

A)  primary market
B)  secondary market
C)  tertiary market
D)  fourth marketE) None of the above
F) B) and C)

Question 13

A market capitalization-weighted index obtains the current market value of each stock by:

Accepted Answer

A)  using the closing market price.
B)  multiplying price times shares outstanding.
C)  multiplying price times daily volume.
D)  dividing earnings by shares outstanding.E) All of the above
F) C) and D)

Question 14

The yields on corporate bonds issued in the primary market should be___________the yields on similar corporate bonds trading in the secondary market.

Accepted Answer

A)  much less than
B)  exactly the same as
C)  slightly higher than
D)  similar toE) None of the above
F) B) and C)

Question 15

NASDAQ stocks:

Accepted Answer

A)  are generally foreign stocks.
B)  trade via the Blue Sheets.
C)  are not generally listed on organized exchanges.
D)  represent less than 1,000 companies.E) B) and C)
F) A) and C)

Question 16

Stocks traded on NASDAQ are bought and sold from specialists,who are often affiliated with brokerage firms.

Accepted Answer

A) True 
 B)False

Question 17

A criticism of the Dow-Jones Industrial Average (DJIA) is:

Accepted Answer

A)  it has too few stocks in the average
B)  it is a value weighted method
C)  it adjusts for even small stock dividends
D)  it includes too many risky stocksE) A) and C)
F) All of the above

Question 18

The NYSE is now part of a:

Accepted Answer

A)  not-for-profit corporation.
B)  a quasi-federal agency.
C)  a publicly-owned company.
D)  a multinational company.E) All of the above
F) B) and C)

Question 19

An NYSE Euronext market maker awaits news of a major merger involving one of the stocks he/she makes a market in.Why does he/she set the bid-ask spread higher?

Accepted Answer

Insiders who have kn...

Question 20

ECNs offer the advantages of automation,lower costs and anonymity to its members.

Accepted Answer

A) True 
 B)False

Exam 4: Securities Markets and Market Indexes

NASDAQ tends to list stocks concentrated in this industry: to be concentrated in these two industries:

Correct AnswerverifiedShow Answer

The NYSE is now part of a:

Correct AnswerverifiedShow Answer

Which of the following statements regarding the Nasdaq Stock Market is not true?

Correct AnswerverifiedShow Answer

A criticism of the Dow-Jones Industrial Average (DJIA) is:

Correct AnswerverifiedShow Answer

The S&P 500 comprises approximately ________________ percent of the market capitalization of all U.S.publicly traded companies.

Correct AnswerverifiedShow Answer

According to its website,NYSE Euronext accounts for nearly what percent of the world's publicly traded equity securities?

Correct AnswerverifiedShow Answer

Why do the DJIA and the S&P 500 have a high correlation?

Correct AnswerverifiedBecause both are cal...View AnswerShow Answer

A market capitalization-weighted index obtains the current market value of each stock by:

Correct AnswerverifiedShow Answer

Stocks traded on NASDAQ are bought and sold from specialists,who are often affiliated with brokerage firms.

Correct AnswerverifiedShow Answer

The largest electronic screen-based equity securities market in the U.S.is known as:

Correct AnswerverifiedShow Answer

ECNs offer the advantages of automation,lower costs and anonymity to its members.

Correct AnswerverifiedShow Answer

Investment bankers are compensated by:

Correct AnswerverifiedShow Answer

The yields on corporate bonds issued in the primary market should be___________the yields on similar corporate bonds trading in the secondary market.

Correct AnswerverifiedShow Answer

Orders on Nasdaq come from market makers,ECNs and on-line brokers.

Correct AnswerverifiedShow Answer

An NYSE Euronext market maker awaits news of a major merger involving one of the stocks he/she makes a market in.Why does he/she set the bid-ask spread higher?

Correct AnswerverifiedInsiders who have kn...View AnswerShow Answer

What is the Nasdaq National Market System?

Correct AnswerverifiedThe Nasdaq/NMS,which is a comp...View AnswerShow Answer

Most secondary bond trading takes place on:

Correct AnswerverifiedShow Answer

Investment bankers operate in the:

Correct AnswerverifiedShow Answer

What factors does the NYSE consider important in determining if a company should be listed on the exchange?

Correct AnswerverifiedThe exchange pays close attent...View AnswerShow Answer

NASDAQ stocks:

Correct AnswerverifiedShow Answer

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Because both are cal...
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Insiders who have kn...
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The Nasdaq/NMS,which is a comp...
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The exchange pays close attent...
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Correct Answer
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