Choose all that are not appropriate.

Question $32$Answer

$1.$

The secondary markets for securities have little value because the activities in the markets will not provide funds to the issuer of such securities$.$

$2.$

Entities that pool capital from various constituents and invest on their behalf are called sell$-$side firms.

$3.$

If hedge funds are finding "anomalies" in the market and taking advantage of such investment opportunities, they contribute in principle to making markets more efficient.

$4.$

Banks perform maturity transformation by offering deposits that could be withdrawn immediately, while lending money for fixed periods.

$5.$

A CFO of a successful tech company, which is considering a sale of shares to the general public, would turn to an investment bank for help.