Match the following:

Proprietorship

C Corporation

Private Markets

Secondary Markets

i. a legal entity created by a state, and it is separate and distinct from its owners and managers but for large enterprises.

ii. Markets in which transactions are work out directly between two parties

iii. Markets in which securities and other financial assets are traded among investors after

they have been issued by corporations

iv. Markets in which corporation raise capital by using new securities.

v. an unincorporated business owned by one individual with unlimited liabilities vi. organization similar to proprietorship but with multiple people.

2. How many the following statement(s) is/are true?

I. A share of common stock is not a derivative, but an option to buy the stock is a derivative because the value of the option is derived from the value of the stock.

II. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership.

III. The "over-the-counter" market received its name years ago because brokerage firms would hold inventories of stocks and then sell them by literally passing them over the counter to the buyer.

IV. Bank of America, a bank that takes in demand deposits and then uses that money to make long-term mortgage loans, is one example of a financial intermediary.

a. 0 c. 2

b. 1 d. 3

3. Which of the following statement(s) is/are false?

a. Ionly c. III only

b. IIonly d. I and III only

e. 4

e. None of the above choices