1A Further Public Offering (FPO) is made on which market:
2The difference between the primary and secondary markets include:
Primary markets and secondary markets have fixed stock prices
The primary market is not subject to commissions nor is the secondary market
Primary markets and secondary markets are both open for an unlimited period of time
The primary market is not subject to commissions and the secondary market is subject to commissions
3The total rate of return is calculated using
Interest and dividends provided by the investment
Increases and decreases in asset value
All of the above
None of the above
4In regards to risk and speculation:
Risk and speculation are essentially the same
Risk is tied to the capital gains and losses of the asset
Speculation is an investment that offers a larger return but is also very risky
Stocks have similar risk profiles
5 Market makers:
Take the highest price for the asset and offer it to buyers
Price according to the mid-point of the bid and offer
Can only make a market in equities
Create a market using the lowest price for the asset
6When shorting a stock
Investors borrow against their own holdings and use their own stock to earn a spread
An investor is anticipating an increase in sales price
An investor is anticipating a decrease in sales price
Investors borrow shares from other investors to earn a spread from the change in price
Both a and c
Both c and d
1A FPO(Further Public Offering) allows the shareholders to directly purchase securities from the market and hence, it is a primary market. The 1st option is the answer.
2 The primary difference between the primary and secondary markets include that primary markets is not subject to comissions whereas the secondary market is. Therefore, the 4th option.
3. The total rate of return can be calculates using interests and dividends provided by the investment or either increases or decreases in asset value and hence, all of the above is the answer.
4 Speculation risk is a type of risk which can ne calculated and hence, they are essentially the same. The first opyion is the answer.
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