Are the following statements true or false? Briefly explain your answer.

If you decide to buy 100 shares of Google today, you would probably do so by calling your broker and asking him or her to execute the trade for you. This would be defined as a primary market transaction.

Derivative transactions are designed to increase risk and are used almost exclusively by speculators who are looking to capture high returns.

Mutual funds typically have large minimum investments and are marketed to institutions and individuals with high net worth.

A larger bid-ask spread means that he dealer will realize a lower profit