1. All of the following statements are true EXCEPT:

	a.	An individual that purchases 1000 shares of an IPO is participating in the primary financial market and their securities are considered primary claims.
	b.	Someone that opens a savings account with a financial intermediary is considered a lender, and the account is a secondary claim.
	c.	If your client purchases an insurance policy, then the premiums paid to the insurance company are primary claims because the periodic payments are determined by the contract, and the insurance company is considered the ultimate borrower.
	d.	Within our financial system companies that receive the proceeds from an IPO have a primary claims with financial middlemen. If the company borrows funds for a capital project, then the loan is a primary claim with the commercial bank.

2. With reference to shareholder wealth maximization:

	a.	The separation of ownership and control make it easier for management decisions to be consistent with shareholder wealth maximization efforts.
	b.	It is a primary concern for stakeholders
	c.	It is the accepted primary objective of a firm, in that the firm is to make efficient use of its resources to increase the market price of the common stock.
	d.	It is equal to profit maximization