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Unformatted text preview: FINC5000 FINAL EXAM NAME : Student ID First 29 Questions are 3 points each 1 . If a stock's intrinsic value is greater than its market price, then the stock is overvalued and should be sold. a./ True b. False 2 . The NYSE is defined as a "primary" market because it is one of the largest and most important stock markets in the world. True by False 3. Which of the following statements is CORRECT? a. The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically. b. An example of a primary market transaction would be your uncle transferring 100 shares of Walmart stock to you as a birthday gift stocks . Capital market instruments include both long-term debt and common If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary mark transaction. e. While the two frequently perform similar functions, investment ba generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors . 4. Which of the following statements is CORRECT? a If you purchase 100 shares of Disney stock from your brother-in this is an example of a primary market transaction. If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction C. The NYSE is an example of an over-the-counter market. d. Only institutions, and not individuals, can engage in derivati market transactions. e. As they are generally defined, money market transactions invo securities with maturities of less than one year....
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  • Spring '10
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