6. Which of the following is not a motivational tool used by firms to align the interests of managers with that of stockholders? a compensation packages b. poison pill c. direct intervention by shareholders d. threat of firing. Which of the following statements is CORRECT? a. The NYSE does not exist as a physical location, rather it represents a loose collection of dealers who trade stock electronically. b. An example of a primary market transaction would be your uncle transferring 100 shares of Wal-Mart stock to you as a birthday gift. c. If your uncle in New York sold 100 shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction. d. Capital market instruments include both long-term debt and common stocks. Which of the following is a primary market transaction? a. IBM issues 2,000,000 shares of new stock and sells them to the public. b. You buy 200 shares of IBM stock from your brother. The trade is not made through a broker-you just give him cash and he gives you the stock. c. You sell 200 shares of IBM stock on the NYSE through your broker. d. One financial institution buys 200,000 shares of IBM stock from another institution. An investment banker arranges the transaction. 9. Money markets are markets for a. Short-term debt securities such as Treasury bills. b. Foreign currencies. c. Corporate stocks. d. Consumer automobile loans. 10. If the stock market is semi strong-form efficient, which of the following statements would be CORRECT? a. The required returns on all stocks are the same, and the required returns on stocks are higher than the required returns on bonds. D.Even if a market is semi strong-form efficient, an investor could still earn a better retum than the market return if he or she had inside information. c. A trading strategy in which you buy stocks that have recently fallen in price is likely to provide you with a return that exceeds the return on the overall stock market. d. The required returns on stocks equal the required returns on bonds. 11. You recently sold 100 shares of Microsoft stock to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following best describes this transaction? a. This is an example of an exchange of physical assets. b. This is an example of a primary market transaction. c. This is an example of a direct transfer of capital. d. This is an example of a money market transaction