1. (a)   What is an efficient market? What are the consequences of market efficiency for the

behavior of stock prices? Does recent research support the idea that the stock market is efficient?

                       (b) Explain what is meant by a PRIVATE PLACEMENT. Who purchase privately placed corporate bonds and Why?

       (c)   Who are the principal BUYERS of corporate notes and bonds? Why are these groups of investors especially interested in acquiring these instruments?

                      (d)   Describe the important role that INVESTMENT BANKERS play in the functioning of the corporate bond market.