投资学英文版课件Chp 3-1.docVIP

PAGE 66 Test Bank Chapter 1 Securities Markets PAGE 67 PAGE 65 Chapter 3 Securities Markets Section 1 Secondary Markets and Role of Market Makers Section 2 Mechanics of Investing in Securities TRUE/FALSE 1. A round lot is the general unit for trading in a security. 2. The purchase of 53 shares of IBM is an odd lot. 3. If a stock is quoted 5051, an investor can buy the stock for 51. 4. If a stock is quoted 1213, an investor can sell the stock for 13. 5. The spread between the bid and ask prices may be viewed as one of the costs of investing. 6. Market makers guarantee to buy and sell at least one round lot at the prices they quote. 7. The American Stock Exchange is an example of a secondary market. 8. Publiclyowned stock that is not listed on an exchange is traded in the overthecounter markets such as the Nasdaq stock market. 9. Investors who are bearish purchase securities. 10. Once a security has been sold, the seller receives a confirmation specifying the settlement date. 11. The margin requirement is set by the SEC. 12. The margin requirement sets the maximum cash investment the individual investor must remit when buying a stock. 13. If the investor buys stock on margin and the price falls, the percentage loss is magnified. 14. A short position is premised on security prices rising. MULTIPLE CHOICE 1. A specialist a. stresses one type of investment b. makes a market in securities c. buys securities for customers accounts d. underwrites stock but not corporate bonds 2. The spread is the a. difference between the bid and ask prices b. commission charged by the broker c. difference between the purchase and sale prices d. difference between the commissions charged by full service and discount brokers 3. A market maker 1. sells stock at the ask price 2. buys stock at the ask price 3. sells stock at the bid price 4. buys stock at the bid price a. 1 and 2 b. 1 and 4 c. 2 and 3 d. 3 and 4 4. The advantages of leavin