Which of the statement is correct?

The NYSE is defined as a "primary" market because it is one of the largest and most important stock markets in the world.

Primary markets are large and important, while secondary markets are smaller and less important.

Private markets are those like the NYSE, where transactions are handled by members of the organization, while public markets are those like the NASDAQ, where anyone can make transactions.

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.

Trades on the NYSE are generally completed by having a brokerage firm acting as a "dealer" buy securities and adding them to its inventory or selling from its inventory. The NASDAQ, on the other hand, operates as an auction market, where buyers offer to buy, and sellers to sell, and the price is negotiated on the floor of the exchange.

QUESTION $9$

Which of the statement is incorrect?

A financial intermediary is a corporation that takes funds from investors and then provides those funds to those who need capital. 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. If you decide to buy $100$ shares of Google, you would probably do so by calling your broker and asking him or her to execute the trade for you. This would be defined as a secondary market transaction, not a primary market transaction.

A publicly owned corporation is a company whose shares are held by the investing public, which may include other corporations as well as institutional investors.

The term IPO stands for "individual purchase order," as when an individual $($as opposed to an institution$)$ places an order to buy a stock. Longer$-$term securities$,$ including stocks and bonds, are traded in the capital markets.

QUESTION $10$

Which of the following statements is CORRECT?

The NYSE does not exist as a physical location. Rather it represents a loose collection of dealers who trade stock electronically.

An example of a primary market transaction would be your uncle transferring $100$ shares of Walmart stock to you as a birthday gift.

Capital market instruments include both long$-$term debt and common stgcks$.$

If your uncle in New York sold $100$ shares of Microsoft through his broker to an investor in Los Angeles, this would be a primary market transaction.

While the two frequently perform similar functions, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise large blocks of capital from investors.

QUESTION $12$

Money markets are markets for

Foreign currencies.

Consumer automobile loans.

Common stocks.

Long$-$term bonds.

Short$-$term debt securities such as Treasury bills and commercial paper.

QUESTION $13$

Which of the following statements is CORRECT?

If you purchase $200$ shares of Pepsi stock from your uncle, this is an example of a primary market transaction.

If Walmart issues additional shares of common stock through an investment banker, this would be a secondary market transaction.

The New York Stock Exchange is an example of an over$-$the$-$counter market.

Only institutions, and not individuals, can engage in derivative market transactions.

As they are generally defined, money market transactions involve debt securities with maturities of less than one year.