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12.4 Securities Market Operations
Who assists in the initial sale of securities in the primary market?
A) The Bank of Canada
B) Business finance companies
C) Securities brokers
D) Investment banks
Answer: D
Diff: 1 Type: MC Page Ref: 282
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets
Securities brokers and dealers, investment banks, and organized exchanges ____.
A) do not perform the intermediation function
B) can be thought of as "financial facilitators"
C) are important in the process of channelling funds from savers to spenders
D) All of the above
Answer: D
Diff: 3 Type: MC Page Ref: 282 - 283
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets
Who assists in the initial sale of securities in the secondary market?
A) The Bank of Canada
B) Securities brokers
C) Business finance companies
D) Investment banks
Answer: B
Diff: 1 Type: MC Page Ref: 282
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets
When a firm issuing new securities has previously issued securities, these previously issued
securities are called ____.
A) investment-grade issues
B) seasoned issues
C) an initial public offering
D) secondary issues
Answer: B
Diff: 1 Type: MC Page Ref: 282
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets