本文档如对你有帮助，请帮忙下载支持！Multiple Choice Questions1. A purchase of a new issue of stock takes place A) in the secondary market. B) in the primary market. C) usually with the assistance of an investment banker. D) A and B. E) B and C. Answer: E Difficulty: Easy Rationale: Funds from the sale of new issues flow to the issuing corporation, making this a primary market transaction. Investment bankers usually assist by pricing the issue and finding buyers. 2. The following statements regarding the specialist are true: A) Specialists maintain a book listing outstanding unexecuted limit orders. B) Specialists earn income from commissions and spreads in stock prices. C) Specialists stand ready to trade at quoted bid and ask prices. D) Specialists cannot trade in their own accounts. E) A, B, and C are all true. Answer: E Difficulty: Moderate Rationale: The specialists' functions are all of the items listed in A, B, and C. In addition, specialists trade in their own accounts. 3. Investment bankers A) act as intermediaries between issuers of stocks and investors. B) act as advisors to companies in helping them analyze their financial needs and find buyers for newly issued securities. C) accept deposits from savers and lend them out to companies. D) A and B. E) A, B, and C. Answer: D Difficulty: Moderate Rationale: The role of the investment banker is to assist the firm in issuing new securities, both in advisory and marketing capacities. The investment banker does not have a role comparable to a commercial bank, as indicated in C. 4. In a "firm commitment" A) the investment banker buys the stock from the company and resells the issue to the public. B) the investment banker agrees to he...
