1. Fill in the blanks (type your answers only, no need to type the questions)

a. Securities with maturity less than one year are traded in the ___________ market, while securities with maturity more than one year are trade in the __________ market. Securities traded in ___________ market usually offer a higher return.

b. Among treasury bills, stock, and bond, _______ is the most risky one.

c. Firms raise capital by selling newly issued securities in the ___________

markets, If a publicly traded company sell additional commons stock to raise

funds, it is called an ________________ offering.

d. Existing, already outstanding securities are traded in the ______________ markets which main function is to provide __________.

e. Co. As IPO has a first day return of 10% while Co. Bs IPO has a first day return of 5%, The IPO of company _____ is more underpriced than that of Company ____.

f. The two problems of the conventional IPO processes are: i) investment banks only allocate shares to __________ investors; ii) IPOs are usually price too ________.

g. An institution that issues its financial claims and then use the proceeds to

purchase securities issued by borrowers is called a financial ______________.

h. One major difference between exchange traded funds and mutual funds is that _____________ are traded throughout the trading day, like stocks, while ______________ are traded only at the end of the day. The market crash on August 14, 2015 has a bigger impact on _____________ funds.

i. A REIT that invests in mortgage loans and mortgage backed securities is called ____________REIT. A REIT that buys, owns, and manages properties is call _________REIT.

j. If you buy stocks from a dealer, you pay the ______ price. If you sell stocks to a dealer, you receive the _______ price

k. ___________ are cooperative associations whose members are supposed to

have a common bond.

l. If a firm sells its holding of securities to raise short-term funding and agree to buy it back within a short period of time, this is called _________________ agreement. To the buyer of the securities, this is called _______________agreement.

m. The financial claims that banks sell to savers are ____________.