1. Which of the following markets has no physical location?

A. American Stock Exchange

B. NASDAQ

C. A futures exchange

D. NYSE

2. If you just purchased 100 shares of Disney through a New York Stock Exchange-based transaction, you participated in

A. A futures market transaction.

B. None of the items listed are correct.

C. A primary stock market transaction

D. A secondary stock market transaction

3. If a firm needs to finance a new corporate headquarters building, then it would most likely seek the funds in the

A. any of the markets listed would work for the firm

B. money market

C. capital market

D. future's market

4. Which of the following statements is NOT CORRECT?

A. "Going public" establishes a firm's true intrinsic value and ensures that a liquid market will always exist for the firm's shares.

B. The stock of publicly owned companies must generally be registered with and reported to a regulatory agency such as the SEC.

C. When stock in a closely held corporation is offered to the public for the first time, the transaction is called "going public, or an IPO," and the market for such stock is called the new issue or IPO market.

D. When a corporation's shares are owned by a few individuals, we say that the firm is "closely, or privately, held."

5. Which of the following is an example of a capital market instrument?

A. U.S. T bills

B. Preferred stock

C. checking account

D. money market mutual fund