Exam 11: Securities Markets

A global depository receipt is traded on the American Stock Exchange.

The price for which the owner is willing to sell the security is called the:

An important function of the Securities and Exchange Commission is to pass judgment on the investment merit of a security.

The maximum buying price or the minimum selling price specified by the investor is called a:

___________________ is the maximum purchase price or minimum selling price specified by an investor.

An agreement whereby an investment banker tries to sell securities of an issuing corporation, but assumes no risk if the flotation is unsuccessful is called a:

The maintenance margin is the minimum margin to which an investment may fall before a margin call is placed.

While the Chicago Board Options Exchange remains the main market for exchange traded options, the ______________ exchange also deals in option contracts.

Investment banks engage in all of the following activities EXCEPT:

__________________ is a technique for trading stocks as a group rather than individually, defined as a minimum of at least 15 different stocks with a maximum value of $1 million.

___________________ is the maximum purchase price or minimum selling price specified by an investor.

The lead investment banker:

The ___________________ Exchange (ICE) serves the global markets for agricultural, credit, currency, emissions, energy and equity index markets.

A person who facilitates market transactions by selling (buying) when other investors wish to buy (sell) is called a:

___________________ is the market for large blocks of listed stocks that operates outside the confines of the organized exchanges.

Commercial banks were for many years prohibited from full-fledged investment banking by the:

The term "Big Board" is another name for the NASDAQ market.

___________________ is when an investor borrows money and invests t he borrowed funds along with his or her own funds in securities.

Existing firms that are already public and wish to raise additional funds may:

On average and across countries, underpricing securities issues represents a significant cost to firms that issue securities.