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2. | (Points: 4.2)   |
  | Many of the larger the larger emerging equity markets (e.g. Korea, India)

 a. Have poor liquidity at present.

 b. Are more liquid stock markets than the developed world, since the poor people living in the developing world are eager to sell their securities.

 c. Have high turnover ratios

 d. None of the above
|
3. | (Points: 4.2)   |
  | As a measureof "liquidity"

 a. Generally, the lower the turnover, the greater the liquidity of a secondary stock market.

 b. Generally, the higher the turnover, the greater the liquidity of a secondary stock market.

 c. The more a financial asset gurgles when shook the greater the liquidity

 d. None of the above |
4. | (Points: 4.2)   |
  | A crowd of floor traders on the NYSE

 a. Mayarrive at a more favorable price for their clients "inside" the specialist's bid and ask quotes.

 b. Are obliged to execute their trades through a specialist.

 c. Are allowed to "front run" their own trades ahead of customer trades.

 d. All of the above
|
4. | (Points: 4.2)   |
  | A crowd of floor traders on the NYSE

 a. May arrive at a more favorable price for their clients"inside" the specialist's bid and ask quotes.

 b. Are obliged to execute their trades through a specialist.

 c. Are allowed to "front run" their own trades ahead of customer trades.

 d. All of the above
|
5. | (Points: 4.2)   |
  | Generally, the lower the turnover ratio,

 a. The less liquid the secondary stock market, indicating difficulty in trading.

 b. The more liquid thesecondary stock market, indicating difficulty in trading.

 c. The more liquid the primary stock market, indicating difficulty in trading.

 d. The more efficient the stock market is.
|
6. | (Points: 4.2)   |
  | In general, Standard & Poor's Emerging Markets Data Base classified a stock market as "emerging" if

 a. It is located in a low- or middle-income economy as defined by the World Bank b. Its investable market capitalization is low relative to its most recent GNI figures

 c. a) or b)

 d. none of the above |
7. | (Points: 4.2)   |
  | In which type of policy actions by the Fed can liquidity "dry up"?

 a. Easy money

 b. Tight money

 c. Decrease in the reserve requirement

 d. Decrease in the discount rate |
8. | (Points: 4.2)   |
  | The secondaryequity markets of the world serve two major purposes. They provide

 a. marketability and share valuation

 b. liquidity and price support

 c. price discovery and arbitrage

 d. safety and stability |
9. | (Points: 4.2)   |
  | Which investment is likely to be the most liquid:

 a. A share of publicly traded company trading on the NYSE.

 b. A bond issued by a Fortune 500. company. c. A house in a nice part of town.

 d. a) and b) are equally liquid
|
10. | (Points: 4.2)   |
  | The sale of previously issued common stock traded between investors occurs in

 a. The primary market

 b. The secondary market

 c. The on-the-run market

 d. The dealer market
|
11. | (Points: 4.2)   |
  | "Yankee" stock offerings are

 a. shares in foreign companiesoriginally sold to U.S. investors

 b. dollar-denominated shares in foreign companies originally sold to U.S. investors

 c. U.S. stocks held abroad

 d. none of the above. |
12. | (Points: 4.2)   |
  | In general if an investment

 a. Has poor liquidity it should offer investors a liquidity premium.

 b. Can be sold fairly quickly at a fair price, it has good liquidity

 c. a) and b) d. None of the above
|
13. | (Points: 4.2)   |
  | A liquid stock market

 a. Is one in which prices reflect all relevant information quickly.

 b. Is one in which prices reflect all publicly available information quickly.

 c. Is one in which prices reflect price and volume information quickly.

 d. Is one in which investors can buy and sell stocks quickly at close to the...
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