Question 1

The National Securities Exchange Seminar is an annual event aimed to educate potential investors, high school students, and college graduates who are interested in learning about the stock exchange. The theme of this year's seminar is "Stock Exchange Knowledge is Power". You are tasked with providing a presentation on the stock market and its operations.

The key emphasis MUST be placed on the below requirements:

A. Explain the functions of a stock exchange.

B. Explain THREE (3) advantages of going public.

C. Briefly explain how a stock market crash may affect the economy.

D. Differentiate between a private placement and a public offering.

E. Persons who wish to trade on the Jamaica Stock Exchange must have an account with the Jamaica Central Securities Depository (JCSD).

i. Explain how the JCSD works.

ii. Explain the purpose of the JCSD

Question 2

Tha-Shae Toys sells a wide variety of kids toys. The business is seasonal with the over 60% of annual purchases and sales occurring during the November - December period. The managers are discussing what to do with their surplus cash reserve during the off-peak periods.

As their investment advisor:

A. Explain the difference the difference between money markets and capital markets. Include in your explanation:

i. the definition (3 marks)

ii. purpose (3 marks)

iii. characteristics (4 marks)

iv. THREE (3) securities traded in each market

B. Discuss how Tha-Shae Toys, the government and investors can use the financial market to aid recovery.