41) The stock market with the most stringent listing requirements is the A) New York Stock Exchange (NYSE). B) NASDAQ Stock Market. C) American Stock Exchange (AMEX). D) All organized exchanges have the same listing requirements in order to make trading fair for all investors.
42) Bill is a public accountant auditing Expo Corporation. Based on information in Expo’s confidential records, Bill recommends the purchase of Expo stock to his brother. A) Bill is involved in insider trading prohibited by the SEC. B) Bill’s brother has no direct connection to Expo Corporation and therefore his purchase of the stock is not prohibited by insider trading laws. C) Bill is not an insider because he is not an officer or employee of Expo Corporation D) If Bill told a non-relative who purchases Expo stock, no insider trading laws would be violated.
43) Capital market instruments include A) negotiable certificates of deposit. B) corporate equities. C) commercial paper. D) Treasury bills.
44) An example of a primary market transaction is A) a new issue of common stock by AT&T. B) a sale of some outstanding common stock of AT&T by an investor. C) AT&T repurchasing its own stock from a stockholder. D) all of the above
45) An example of a primary market transaction involving a money market security is A) a new issue of a security with a very short maturity. B) a new issue of a security with a very long maturity. C) the transfer of a previously-issued security with a very short maturity. D) the transfer of a previously-issued security with a very long maturity.
46) An example of a secondary market transaction involving a capital market security is A) a new issue of a security with a very short maturity. B) a new issue of a security with a very long maturity. C) the transfer of a previously-issued security with a very short maturity. D) the transfer of a previously-issued security with a very long maturity.
47) Financial intermediaries A) offer indirect securities. B) include the national and regional stock exchange. C) usually are underwriting syndicates. D) constitute the various secondary markets.
48) The telecommunications system that provides a national information linkup among brokers and dealers operating in the over-the-counter market is called A) NCIS. B) NSQA. C) NASDAQ. D) NASQ.
49) Which of the following statements is false? A) Brokers purchase securities for their own account. B) Most corporate bond trading takes place over the counter. C) Broker-dealers stand ready to buy and sell specific securities at selected prices. D) none of the above
50) Insurance companies invest in the “long-end” of the securities market by purchasing securities with longer maturities. In which of the following instruments would an insurance company be least likely to invest most of its assets? A) corporate stocks B) corporate bonds C) mortgages D) commercial paper