LO 0-4: Primary and Secondary Markets Flashcards
companies raise money by issuing stocks and bonds on the:
- primary market
- secondary market
- both
primary market
the first time a company issues a stock to the public is called:
- secondary stock offering
- initial stock offering (IPO)
- first public offering (FPO)
- primary stock offering (PSO)
-initial stock offering (IPO)
what type of banks help corporations raise money by issuing stocks and bonds?
- pension fund
- mutual fund
- commercial bank
- investment bank
-investment bank
which of the following are secondary markets?
-NYSE
-AMEX
-Russell 3000
-S&P 500
-NASDAQ
=DOW
- NYSE
- AMEX
- NASDAQ
you should believe anything you read from sell-side analysts
True or False
False
Why do companies care about their stock price on the secondary market?
- if the stock price falls they will not be able to continue to operate
- it will affect them if they need to issue more stock
-it will affect them if they need to issue more stock
when you buy a stock you are typically buying it :
- directly form the company
- on a secondary market
- from an investment bank
-on a secondary market
the largest stock exchanges in the world are located in:
- Japan
- China
- USA
- Germany
-USA
primary market process raises money by
issuing stocks or bonds
who facilitates the securities?
investment banks
who buys stocks and bonds>?
financial intermediaries or households - individual person
example of a financial intermediary
mutual or pension fund
Investment banks make a lot of money because they take
a percentage for deal
investment banks make more money issuing ____ than ____
bonds than stocks
which market is larger?
bond market is larger than stock market
