Answer the following questions $($submit in a Word or PDF$,$ format$)$:

Explain the main role of money market securities and identify the more popular money market securities$,$ and elaborate where necessary.

Explain how financial institutions participate in money markets.

Identify the more popular types of bonds, and elaborate where necessary.

Explain the concept of bond price elasticity. Would bond price elasticity suggest a higher price sensitivity for zero$-$coupon bonds or high$-$coupon bonds that are offering the same yield to maturity? Why?

Describe how mortgage$-$backed securities are used.

Describe how collateralized mortgage obligations $($CMOs$)$ are used and why they have been popular, and differentiate them from collateralized debt obligations $($CDOs$).$

Explain the role of venture capital funds and private equity funds provide equity financing to firms.

Describe the processes of an engaging in an initial public offering and in a secondary offering.

Explain the use of the price$-$earnings $($PE$)$ ratio for valuing a stock. Why might investors derive different valuations or inaccurate valuation for a stock when using the price$-$earnings method?

Describe the dividend discount valuation model. What are some limitations of the dividend discount model?

Describe the value$-$at$-$risk method for measuring risk.

Explain why investor sentiment can affect stock prices.

Explain the difference between a market order and a limit order.

Explain how margin requirements can affect the potential return and risk from investing in a stock. What is the maintenance margin?

Describe the short selling process. Explain the short interest ratio. Under what conditions might investors consider short selling a specific stock?