AS05Financial Markets Questions

Questions

1.

In addition to U.S. corporations, what government groups compete for funds in the U.S. capital markets?

2.

What foreign industry has privatization been most important in?

3.

How does foreign investment help the U.S. government?

4.

What is a key tax characteristic associated with state and local (municipal) securities?

5.

What are three forms of corporate securities discussed in the chapter?

6.

Do corporations rely more on external or internal funds as sources of financing?

7.

Explain the role of financial intermediaries in the flow of funds through the three-sector economy.

8.

What are electronic communication networks (ECNs)? Generally speaking, are they currently part of the operations of the New York Stock Exchange and the NASDAQ Stock Market?

9.

Why is secondary trading in the security markets important?

10.

How would you define efficient security markets?

11.

The efficient market hypothesis is interpreted in a weak form, a semistrong form, and a strong form. How can we differentiate its various forms?

12.

What was the primary purpose of the Securities Act of 1933?

13.

What act of Congress created the Securities and Exchange Commission?

14.

What was the purpose of the Sarbanes-Oxley Act of 2002?

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