19. ------------- are where existing securities trade over and over again among investors.

a. Primary Markets

b. Secondary Markets

c.IPOs

d. All of the above

18. Stocks not listed in any market are considered to be:

a. over the counter securities

b. electronic communication networks

c. primary securities

d. a and b

17. Equities trade in the United States in which markets?

a. The NYSE

b. The Amex

c. The Nasdaq Market

d. All of the above markets

16. There are ----------- seats on the NYSE.

a. 1.366

b. 1,539

c. 1,941

d. 2,152

15. Investment bankers operate in the:

a. primary market

b. secondary market

c. third market

d. fourth market

14. A computerized trading network that matches buy and sell orders electronically entered by customers is a:

a. National Markets System

b. Electronic Communications Networks

c. Internet Investment Service

d. Global Investment Network

13. OTC securities:

a. are listed on some regional exchanges.

b. trade via the Blue Sheets.

c. are not listed on organized exchanges.

d. represent less than 1,000 companies.

12. Investors should be willing to invest in riskier investments only:

a. if the term is short.

b. if there are no safe alternatives except for holding cash.

c. if the expected return is high enough for the risk level

d. if they are true speculators.

11. The return component that gives periodic cash flows to the investor is known as the:

a. capital gain

b. interest rate

c. yield

d. unrealized gain

10. If someone was to tell you that "the market" was up by two percent, they generally mean that __________ up by two percent.

a. the level of a stock price index was

b. retail prices of goods went

c. productivity was

d. costs were