For investors, the function of secondary markets is to provide marketability for the shares of securities they own at a fair price. Select one : a . True b . False
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For investors, the function of secondary markets is to provide marketability for the shares of securities they own at a fair price. Select one :
a . True
b . False
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- Secondary Market can be best described in which of the following statement? a. It is a market for an unlisted company to raise equity capital. b. It is a market where securities are issued through private placement. c. It is a market in which short-term money market instruments such as Treasury bills are traded. d. It is a market in which preowned securities are traded.Which of the following statement is true? a. In brokered markets, buyers and sellers confront each other directly and bargain over price. b. Primary market is the market for trading outstanding securities. c. Preference shareholders have a higher priority claim on company’s assets than ordinary shareholders in the event of insolvency. d. Ordinary shareholders receive fixed dividend payments.If an individual investor buys or sells a currently outstanding stock through a broker, this is a primary market transaction.a.Trueb.False
- Which of the following characteristics accurately describes the stock market? An active market that determines the price of a firm’s shares A fixed-income market where participants buy and sell debt securities The bid-ask spread in a dealer market represents the profit that a dealer would make on a transaction involving a security. Which of the following statements best describes the bid-ask spread? The difference between the closing price of the security and the opening price of the security on the day of the transaction. The sum of the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. The difference between the price at which a dealer is willing to buy a security and the price at which a dealer is willing to sell it. Fernando, a trader, wants to buy 1,000 shares of XYZ stock, while a second trader, Ally, is willing to sell 1,500 shares of the same stock. Unfortunately, Fernando…Warrants are A. investments whose value is directly related to the price of the underlying stock. B. long-term options to sell shares of the issuing firm's stock. C. fairly stable, low-risk investments. D. structured to sell for precisely their intrinsic value.Which of the following is not the function of the secondary market Select one: a. Marketability to securities b. Liquidity of securities c. None of these d. It gurantees fixed rate of return to the investor
- Which of the following is an appropriate goal for the firm? Select one: a. All of these b. In secondary markets, outstanding shares of stock are bought and sold among investors. c. An active secondary market causes firms to sell their new debt or equity issues at a higher cost of funds. d. A secondary market allows investors to share their risk and return e. For an investor, the function of secondary markets is to provide profitability for the shares of securities they own.distinguish between dilutive and antidilutive securities, and describe the implications of each for the earnings per share calculationThe fair value of a stock can be determined by the factors of market forces Select one: a. True b. False
- Indicate whether the following statements are (True) or (False) and correct the false statements: Primary and secondary markets are markets for short-term and long-term securities, respectively. Public offering is the sale of a new security issue, typically bonds or preferred stock, directly to an investor or group of investors. When considering each financial decision alternative or possible action in terms of its impact on the share price of the firm's stock, financial managers should accept only those actions that are expected to increase the firm's profitability.If securities markets are rational and efficient in that they fully and correctly include all available information into a company’s stock price, the resulting price will reflect investors’ unbiased expectations about the company’s future earnings and cash flows. True or FalseThe designation s to whether the equity investment is at FVPL or OCI depends upon whether the securities are trading or nontrading true false