13._____When does a red herring become a prospectus?

a. when it goes to the printer.

b. when the issue is placed, i.e., the deal is done.

c. when it is pickled and fileted.

d. when it is caught.

e. when the issue fails.

14._____According to your instructor, the underwriting process is fraught with risk, exposing the lead underwriter, the underwriting syndicate, and the selling group to dire financial peril.

a. yes

b. no

15._____Curency risk is a characteristic of

a. domestic stocks.

b. international stocks.

c. EU stocks.

d. all of the above.

e. more than one, but not all, of the above.

16._____Over the last ten or so years, markets have been characterized by

a. declining bid/ask spreads.

b. increasing bid/ask spreads.

c. elimination of bid/ask spreads.

d. increasing commissions.

e. elimination of risk premia.

17._____When you are long a stock and have not borrowed to become long, the limit to your downside is

a. infinite.

b. defined.

c. the amount you paid for the stock.

d. all of the above.

e. more than one, but not all, of the above.

18._____When you are short a stock and have not borrowed to become short, the limit to your downside is

a. infinite.

b. defined.

c. the amount you paid for the stock.

d. all of the above.

e. more than one, but not all, of the above.