Friday, October 10, 2014

Many common stocks are traded over-the-counter, although the largest corporations usually have their...

1) Forty or so dealers establish a \"market\" in these securities by standing ready to buy and sell them.

A) Secondary stocks

B) Surplus stocks

C) U.S. government bonds

D) Common stocks

2) Which of the following statements about financial markets and securities is true?

A) Many common stocks are traded over-the-counter, although the largest corporations usually have their shares traded at organized stock exchanges such as the New York Stock Exchange.

B) As a corporation gets a share of the broker\"s commission, a corporation acquires new funds whenever its securities are sold.

C) Capital market securities are usually more widely traded than shorter-term securities and so tend to be more liquid.

D) Because of their short-terms to maturity, the prices of money market instruments tend to fluctuate wildly.

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