金融市场与金融机构基础FabozziChapter14Word文件下载.docx

1、 CComment: The key distinction between a primary market and a secondary market is that, in the secondary market, the issuer of the asset does not receive funds from the buyer. Rather, the existing issue changes hands in the secondary market, and funds flow from the buyer of the asset to the seller.D

2、iff: 2Topic: 14.1 Function of Secondary MarketsObjective: 14.1 the definition of a secondary market2） Without a secondary market, issuers would be unable to _, or they would have to pay a higher rate of return, as investors would _ in compensation for expected illiquidity in the securities.A） sell n

3、ew securities; increase the discount rateB） sell new securities; decrease the discount rateC） buy new securities; decrease the priceD） sell new securities; increase the price A 14.12 the implications of pricing efficiency for market participants3） Investors in financial assets receive _.A） illiquidi

4、ty for their assets.B） information about the assets fair or consensus values.C） increased the costs of searching for likely buyers and sellers of assets.D） the disadvantage of higher transaction costs. B Investors in financial assets receive several benefits from a secondary market. Such a market ob

5、viously offers them liquidity for their assets as well as information about the assets fair or consensus values. Furthermore, secondary markets bring together many interested parties and thereby reduce the costs of searching for likely buyers and sellers of assets. Moreover, by accommodating many tr

6、ades, secondary markets keep the cost of transactions low. By keeping the costs of both searching and transacting low, secondary markets encourage investors to purchase financial assets.2 Trading Locations1） One indication of the usefulness of secondary markets is that they exist throughout _.A） the

7、 United States.B） Europe and Asia.C） each state.D） the world. D 1 14.2 Trading Locations 14.2 the need for secondary markets for financial assets2） In the United States, secondary trading of common stock occurs _.A） in a number of trading locations.B） in Dallas, Texas.C） in each major city.D） None o

8、f these3） Which of the below statements is TRUE?A） In the United States, secondary shares are traded on major national stock exchanges （the largest of which is the American Stock Exchange） and regional stock exchanges.B） In the United States, significant trading in stock takes place on the so-called

9、 over-the-counter or OTC market, which involves specific geographical locations.C） In the United States, the dominant OTC market for stocks in the United States is the New York Stock Exchange.D） In the United States, some bonds are traded on exchanges, but most trading in bonds in the United States

10、and throughout the world occurs in the OTC market. In the United States, secondary trading of common stock occurs in a number of trading locations. Many shares are traded on major national stock exchanges （the largest of which is the New York Stock Exchange） and regional stock exchanges, which are o

11、rganized and somewhat regulated markets in specific geographical locations. Additional significant trading in stock takes place on the so-called over-the-counter or OTC market, which is a geographically dispersed group of traders linked to one another via telecommunication systems. The dominant OTC

12、market for stocks in the United States is Nasdaq. Some bonds are traded on exchanges, but most trading in bonds in the United States and throughout the world occurs in the OTC market.3 Market Structures1） In a continuous market, prices may vary _.A） because of the basic situation of supply and deman

13、d.B） are determined discontinuously throughout the trading day.C） are determined continuously throughout the trading day even if buyers and sellers are not submitting orders.D） with the pattern of orders reaching the market. Many secondary markets are continuous, which means that prices are determin

14、ed continuously throughout the trading day as buyers and sellers submit orders. For example, given the order flow at 10:00 A.M., the market clearing price of a stock on some organized stock exchange may be $70; at 11:00 A.M. of the same trading day, the market-clearing price of the same stock, but w

15、ith different order flows, may be $70.75. Thus, in a continuous market, prices may vary with the pattern of orders reaching the market and not because of any change in the basic situation of supply and demand. 14.3 Market Structures 14.3 the difference between a continuous and a call market2） _, ord

16、ers are grouped together for simultaneous execution at the same price.A） In a bull marketB） In an efficient marketC） In a call marketD） In a bear market3） Which of the below statements is FALSE?A） In a call market, a market maker holds an auction for a stock at certain times in the trading day （or p

17、ossibly more than once in a day）.B） Many secondary markets are continuous, which means that prices are determined continuously throughout the trading day as buyers and sellers submit orders.C） In a call market, a market maker holds an auction for a stock at the same time each day.D） An auction in a

18、call market may be oral or written. In a call market, a market maker holds an auction for a stock at certain times in the trading day （or possibly more than once in a day）.4 Perfect Markets1） Perfect market results when _.A） the number of buyers and sellers is sufficiently small, and all participant

19、s are small enough relative to the market so that no individual market agent can influence the commoditys price.B） the number of buyers and sellers is sufficiently large, and all participants are small enough relative to the market so that all individual market agent can influence the commodityC） th

20、e number of buyers and sellers is sufficiently large, and all participants are small enough relative to the market so that no individual market agent can influence the commodityD） the number of buyers and sellers is sufficiently small, and all participants are small enough relative to the market so

21、that all individual market agent can influence the commodity In general, a perfect market results when the number of buyers and sellers is sufficiently large, and all participants are small enough relative to the market so that no individual market agent can influence the commoditys price. 14.4 Perf

22、ect Markets 14.4 the requirements of a perfect market2） A perfect market results when all buyers and sellers are _, and the market price is determined where there is _.A） price-takers; equality of supply and demand.B） price-makers;C） price-takers; inequality of supply and demand.D） price-makers;3） A

23、 market is not perfect only because market agents are price takers but is also free of transactions costs and any impediment to the interaction of supply and demand for the commodity. Economists refer to these various costs and impediments as frictions. Frictions include _.A） bid-ask spreads charged

24、 by dealers and order handling and clearance charges.B） taxes （but not on capital gains） and government-imposed transfer fees.C） costs of acquiring information about the financial asset and restrictions on market takers.D） financial liability that a buyer or seller may take and taxes on capital gain

25、s. A market is not perfect only because market agents are price takers. A perfect market is also free of transactions costs and any impediment to the interaction of supply and demand for the commodity. Economists refer to these various costs and impediments as frictions. The costs associated with fr

26、ictions generally result in buyers paying more than in the absence of frictions and/or in sellers receiving less commissions charged by brokers. Frictions include:bidask spreads charged by dealers.order handling and clearance charges.taxes （notably on capital gains） and government-imposed transfer f

27、ees.costs of acquiring information about the financial asset.trading restrictions, such as exchange-imposed restrictions on the size of a position in the financial asset that a buyer or seller may take.restrictions on market makers.halts to trading that may be imposed by regulators where the financial asset is traded.Top