What is the difference between each pair of items? a) listed and unlisted securities b) brokers and market makers c) full-service and discount brokerage firms d) primary and secondary market

e) market order and good-till-canceled order f) cash account and margin account

2. When would you use a stop-loss order? 3. Why is it riskier to buy stock on margin? 4. The following questions concern short selling: a) When should an investor sell short? b) How can investors sell stock they do not own? c) How is a short position closed? d) How does the investor profit from a short sale? e) What is the risk associated with a short position?

5. How are the SIPC and FDIC similar? Why are securities laws frequently referred to as full disclosure laws, and what is the role of the SEC?

6. In an underwriting, what role does each of the following play? a) the investment banker b) the syndicate c) the preliminary and final prospectus d) the SEC

7. What is the difference between an underwriting and a best-efforts sale of securities? Who bears the risk associated with each sale? If the investment banker overprices a new issue of securities, who sustains the losses?

8. You may find information on pending IPOs at sites such as MarketWatchs IPO Calendar (https://www.marketwatch.com/tools/ipo-calendar) or IPO Monitor (www .ipomonitor.com). Go to a calendar of new offerings and select a company that just went public or is just about to go public. Did the price of the stock increase by more than 10 percent after one day, one week, or one month? If no