" Pape 2-6 2-5 What would happen to the U.S. standard of living if people lost faith in the safety of the financial institutions? Explain. What types of changes have financial markets experienced during the last two decades? Have they been perceived as positive or negative changes? Explain. 2-7 Differentiate between dealer markets and stock markets that have a physical location. 2-8 Identify and briefly compare the two leading stock exchanges in the United States today. 2-9 Describe the three different forms of market efficiency. 2-10 Investors expect a company to announce a 10% increase in earnings, instead, the company announces a 1% increase. If the market is semi-strong form efficient, which of the follow- ing would you expect to happen? (Hint: Refer to Footnote 13 in this chapter.) a. The stock's price will increase slightly because the company had a slight increase in earnings. b. The stock's price will fall because the earnings increase was less than expected. C. The stock's price will stay the same because earnings announcements have no effect if the market is semi-strong form efficient. 2-11 Briefly manlaiset