When an issuer sells a new financial asset to the public, it is sold in the: Select one:
a. Secondary market b. Commodity market c. Primary market. d. Intermediate market.
(c) - Primary market.
The primary market is where new securities are first issued. Thereafter, they are traded on the secondary market.
(a) is incorrect - the secondary market is where securities already issued are traded between buyers and sellers
(b) is incorrect - this is the market for exchanging commodities, and commodity-based derivatives
(d) is incorrect - The primary market is where new securities are first issued.
When an issuer sells a new financial asset to the public, it is sold in the:...
QUESTION 18 When a financial asset is first sold, the sale takes place in the the market, and subsequent sales take place in market. Oinvestment; commercial Ostock; bond O primary; secondary secure; risk
What is a market? Differentiate between the following types of markets: physical asset market versus financial asset markets, spot markets versus futures markets, money markets versus capital markets, primary markets versus secondary markets, and public markets versus private markets.
Select all that is/are true about the financial markets. a. Financial markets bring the buyers and sellers of debt and equity together. b. Stocks trading on an organized exchange such as the NYSE are also referred to as listed securities c. Securities traded between two shareholders happen in the primary market. d. When a firm first sells shares to the public this is a primary market transaction. e. The OTC market has a central location and is also an auction...
1. The investment process includes two major decisions that investors should consider: Asset allocation and security selection. Security selection and agency analysis. Security selection and active management. Asset allocation and active management. 2. Investment banks help firms issue new securities to the public in the _____ markets. Later the public can buy and sell these same securities in the _____ markets. secondary, stock primary, secondary real, financial stock, primary
What new securities are being sold to investment banks in a primary market? And what what type of securities are being exchanged in a secondary market? What does it mean when they say the corporation does not receive any money in a secondary market ?
Select all that is/are true or false about the financial markets. a. Financial markets bring the buyers and sellers of debt and equity together. b. Stocks trading on an organized exchange such as the NYSE are also referred to as listed securities c. Securities traded between two shareholders happen in the primary market. d. When a firm first sells shares to the public this is a primary market transaction. e. The OTC market has a central location and is...
Question 5 A new financial asset is priced at $110 per share. In one year, the payoff may be $150 with 70% probability and $90 with 30 % probability. The following information is gathered for current situation: • • • The expected market rate of return is 25 %. The standard deviation of the market return is 30 %. The risk-free rate is 6%. It is estimated that the payoff of the new asset is correlated with the market return...
QUESTION 10 / 11 An asset is classified as goodwill on the balance sheet when a company purchases an asset at greater than fair-market value. According to GAAP, you can adjust goodwill when ______________SELECT ONLY ONE an asset is sold stock prices go down a new asset is purchased stock prices go up goodwill is impaired
When a corporation issues additional shares of common stock, they do so: Select one: O a. Only through the OTC market. O b. In the primary market. c. Through a broker in the secondary market. O d. Only through the private markets. e. Through a dealer in the secondary market.
Corporations issue their shares to the investing public in the: Primary market Secondary market a. Yes Yes b. No Yes c. Yes No d. No No Multiple Choice Option a. Option c. Option b. Option d.