ch13

1) How do corporate stocks differ from bonds?

2) How do common stocks differ from preferred stocks?

3) How do over-the-counter markets differ from organized exchanges?

4) What is the role of specialists on a stock exchange?

5) What are the advantages and disadvantages of Electronic Communications Networks (ECNs) for trading stocks? 6) What is the role of the required return on equity investments in stock valuation models?

7) Using the Gordon growth model, explain why the 2001 terrorist attacks and the Enron financial scandal caused stock prices to decline.

8) What are American Depository Receipts (ADRs)?

9) What are the objectives of the Securities and Exchange Commission?

10) What are the advantages and disadvantages of exchange traded funds (ETFs) fro trading stocks?

11) Why would a crisis in the subprime mortgage market lead to declining prices in the U.S. equity markets?