1. The investment banking department of a broker-dealer does NOT typically perform which of the following activities?

Select one:

a.

Acting as an underwriter when an issuer wants to offer bonds

b.

Assisting a company that's restructuring after declaring bankruptcy

c.

Buying and selling securities for both customers and the firms own account

d.

Assisting a corporation in raising capital

2. If a corporation believes that its stock is undervalued, which of the following actions will cause the share price to rise?

Select one:

a.

Issuing preemptive rights

b.

Issuing additional shares

c.

Buying back some of the shares

d.

Issuing bonds with call option

3. In the secondary market, the "spread" for a security represents the difference in:

Select one:

a.

The market prices and public offering prices

b.

The ask and offered price

c.

The nominal and firm prices

d.

The bid and offer prices

4. The third market is concerned with:

Select one:

a.

Listed securities trading on an exchange

b.

OTC equity securities trading on an exchange

c.

Securities listed on an exchange that are traded directly between institutional investors

d.

Securities listed on an exchange, but traded in the OTC market