Question

True or false

11) If a firm sells stock worth $9 million, it must file with the SEC

12) It is fair to expect a firm's number of authorization shares to be less than its number of outstanding shares

13) Operational efficiency refers to how quickly information is reflected in stock prices

14)Most researchers believe that the stock market is semi-strong form efficient.

15) The New York Stock Exchange is part of the primary market

Answer 1

11). False - There is no such rule which mandates filing with the SEC if a firm sells stock worth $9 million.

12). False - The number of authorized shares cannot be less than the number of outstanding shares.

13). False - Operational efficiency refers to the speed and efficiency with which orders are processed at the best price available on the exchange.

14). True - The semi-strong form of efficient market hypothesis is most popular with researchers.

15). False - The NYSE is part of the secondary market.