Question

a. 2.04 b. 2.14 c. 2.26 d. 2.38 e. 2.49 In class Portion True/False (True-A, False=B) 13. A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capital. A bank that takes in demand deposits and then uses that money to make long-term mortgage loans is one example of a financial intermediary. 14. Sell side analysts work for investment consulting firms. 15. In a market order you can specify the buy or sell price on which you want to trade. 16. The spread is equal to Ask Minus Bid. 17. The New York Stock Exchange is primarily a secondary market. 18. A publicly owned corporation is a company whose shares are held by the investing public, which may include other corporations as well as institutional investors. 19. Financial statement (ratio) analysis is complete and it does not have any limitations. 20. Electronic Communication Networks (ECNs) offer an opportunity to investor to trade directly without the intervention of the market professionals (e.g. specialists, dealers, market makers). 21. If you decide to buy 100 shares of Google, you would probably do so by calling your broker and asking him or her to execute the trade for you. This would be defined as a secondary market transaction, not a primary market transaction.

Answer 1

13)TRUE=A

14)TRUE=A

15)FALSE=B

16)FALSE=B

17)TRUE=A

18)FALSE=B

19)FALSE=B

20)FALSE=B

21)TRUE=A