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© 2014 Pearson Canada Inc.#
A corporation acquires new funds only when its securities are sold ____.
A) in the primary market by an investment bank
B) in the primary market by a stock exchange broker
C) in the secondary market by a securities dealer
D) in the secondary market by a commercial bank
Answer: A
Diff: 2 Type: MC Page Ref: 282
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets
Brokerage firms engage in all of the following securities market activities except for acting
as ____.
A) brokers
B) dealers
C) central bankers
D) investment bankers
Answer: C
Diff: 1 Type: MC Page Ref: 283
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets
The Toronto Stock Exchange was established in ____.
A) 1852
B) 1832
C) 1822
D) 1902
Answer: A
Diff: 1 Type: MC Page Ref: 283
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets
2 0) Which of the following is true?
A) Insider information is public information.
B) Brokerage firms act as brokers, dealers, and investment bankers.
C) Dealers are pure intermediaries who act as agents.
D) Brokers make their living by selling securities at a higher price than what they paid for them.
Answer: B
Diff: 2 Type: MC Page Ref: 283
Skill: Recall
Objective List: 12.4 Understanding the operation of securities markets