Exam 2: The Financial Market Environment

The Securities Act of 1933 focuses on regulating the sale of securities in the primary market, whereas the 1934 Act deal with the regulations governing the transactions in the secondary market.

Most money market transactions are made in

The Glass-Steagall Act

The sale of a new security directly to an investor or a group of investors is called

The process of pooling mortgages or other types of loans and selling the claims or securities against that pool in the secondary market is called

The average tax rate of a corporation with ordinary income of $105,000 and a tax liability of $24,200 is

Trading is carried out in the Over-the-Counter (OTC) Exchange by

Securitization made it harder for banks to lend money because they could not pass the risk on to other investors.

Which of the following provide savers with a secure place to invest funds and offer both individuals and companies loans to finance investments?

Which of the following assist companies in raising capital, advise firms on major transactions such as mergers or financial restructuring, and engage in trading and market making activities?

Unlike the organized exchanges, the OTC makes a market in both outstanding securities and new public issues, making it both a secondary and a primary market.