金融市场与金融机构基础FabozziChapter14文档格式.docx

金融市场与金融机构基础FabozziChapter14文档格式.docx

《金融市场与金融机构基础FabozziChapter14文档格式.docx》由会员分享，可在线阅读，更多相关《金融市场与金融机构基础FabozziChapter14文档格式.docx（21页珍藏版）》请在冰点文库上搜索。

C

Comment:

Thekeydistinctionbetweenaprimarymarketandasecondarymarketisthat,inthesecondarymarket,theissueroftheassetdoesnotreceivefundsfromthebuyer.Rather,theexistingissuechangeshandsinthesecondarymarket,andfundsflowfromthebuyeroftheassettotheseller.

Diff:

2

Topic:

14.1FunctionofSecondaryMarkets

Objective:

14.1thedefinitionofasecondarymarket

2）Withoutasecondarymarket,issuerswouldbeunableto________,ortheywouldhavetopayahigherrateofreturn,asinvestorswould________incompensationforexpectedilliquidityinthesecurities.

A）sellnewsecurities;

increasethediscountrate

B）sellnewsecurities;

decreasethediscountrate

C）buynewsecurities;

decreasetheprice

D）sellnewsecurities;

increasetheprice

A

14.12theimplicationsofpricingefficiencyformarketparticipants

3）Investorsinfinancialassetsreceive________.

A）illiquidityfortheirassets.

B）informationabouttheassets'

fairorconsensusvalues.

C）increasedthecostsofsearchingforlikelybuyersandsellersofassets.

D）thedisadvantageofhighertransactioncosts.

B

Investorsinfinancialassetsreceiveseveralbenefitsfromasecondarymarket.Suchamarketobviouslyoffersthemliquidityfortheirassetsaswellasinformationabouttheassets’fairorconsensusvalues.Furthermore,secondarymarketsbringtogethermanyinterestedpartiesandtherebyreducethecostsofsearchingforlikelybuyersandsellersofassets.Moreover,byaccommodatingmanytrades,secondarymarketskeepthecostoftransactionslow.Bykeepingthecostsofbothsearchingandtransactinglow,secondarymarketsencourageinvestorstopurchasefinancialassets.

2TradingLocations

1）Oneindicationoftheusefulnessofsecondarymarketsisthattheyexistthroughout________.

A）theUnitedStates.

B）EuropeandAsia.

C）eachstate.

D）theworld.

D

1

14.2TradingLocations

14.2theneedforsecondarymarketsforfinancialassets

2）IntheUnitedStates,secondarytradingofcommonstockoccurs________.

A）inanumberoftradinglocations.

B）inDallas,Texas.

C）ineachmajorcity.

D）Noneofthese

3）WhichofthebelowstatementsisTRUE?

A）IntheUnitedStates,secondarysharesaretradedonmajornationalstockexchanges（thelargestofwhichistheAmericanStockExchange）andregionalstockexchanges.

B）IntheUnitedStates,significanttradinginstocktakesplaceontheso-calledover-the-counterorOTCmarket,whichinvolvesspecificgeographicallocations.

C）IntheUnitedStates,thedominantOTCmarketforstocksintheUnitedStatesistheNewYorkStockExchange.

D）IntheUnitedStates,somebondsaretradedonexchanges,butmosttradinginbondsintheUnitedStatesandthroughouttheworldoccursintheOTCmarket.

IntheUnitedStates,secondarytradingofcommonstockoccursinanumberoftradinglocations.Manysharesaretradedonmajornationalstockexchanges（thelargestofwhichistheNewYorkStockExchange）andregionalstockexchanges,whichareorganizedandsomewhatregulatedmarketsinspecificgeographicallocations.Additionalsignificanttradinginstocktakesplaceontheso-calledover-the-counterorOTCmarket,whichisageographicallydispersedgroupoftraderslinkedtooneanotherviatelecommunicationsystems.ThedominantOTCmarketforstocksintheUnitedStatesisNasdaq.Somebondsaretradedonexchanges,butmosttradinginbondsintheUnitedStatesandthroughouttheworldoccursintheOTCmarket.

3MarketStructures

1）Inacontinuousmarket,pricesmayvary________.

A）becauseofthebasicsituationofsupplyanddemand.

B）aredetermineddiscontinuouslythroughoutthetradingday.

C）aredeterminedcontinuouslythroughoutthetradingdayevenifbuyersandsellersarenotsubmittingorders.

D）withthepatternofordersreachingthemarket.

Manysecondarymarketsarecontinuous,whichmeansthatpricesaredeterminedcontinuouslythroughoutthetradingdayasbuyersandsellerssubmitorders.Forexample,giventheorderflowat10:

00A.M.,themarketclearingpriceofastockonsomeorganizedstockexchangemaybe$70;

at11:

00A.M.ofthesametradingday,themarket-clearingpriceofthesamestock,butwithdifferentorderflows,maybe$70.75.Thus,inacontinuousmarket,pricesmayvarywiththepatternofordersreachingthemarketandnotbecauseofanychangeinthebasicsituationofsupplyanddemand.

14.3MarketStructures

14.3thedifferencebetweenacontinuousandacallmarket

2）________,ordersaregroupedtogetherforsimultaneousexecutionatthesameprice.

A）Inabullmarket

B）Inanefficientmarket

C）Inacallmarket

D）Inabearmarket

3）WhichofthebelowstatementsisFALSE?

A）Inacallmarket,amarketmakerholdsanauctionforastockatcertaintimesinthetradingday（orpossiblymorethanonceinaday）.

B）Manysecondarymarketsarecontinuous,whichmeansthatpricesaredeterminedcontinuouslythroughoutthetradingdayasbuyersandsellerssubmitorders.

C）Inacallmarket,amarketmakerholdsanauctionforastockatthesametimeeachday.

D）Anauctioninacallmarketmaybeoralorwritten.

Inacallmarket,amarketmakerholdsanauctionforastockatcertaintimesinthetradingday（orpossiblymorethanonceinaday）.

4PerfectMarkets

1）Perfectmarketresultswhen________.

A）thenumberofbuyersandsellersissufficientlysmall,andallparticipantsaresmallenoughrelativetothemarketsothatnoindividualmarketagentcaninfluencethecommodity'

sprice.

B）thenumberofbuyersandsellersissufficientlylarge,andallparticipantsaresmallenoughrelativetothemarketsothatallindividualmarketagentcaninfluencethecommodity'

C）thenumberofbuyersandsellersissufficientlylarge,andallparticipantsaresmallenoughrelativetothemarketsothatnoindividualmarketagentcaninfluencethecommodity'

D）thenumberofbuyersandsellersissufficientlysmall,andallparticipantsaresmallenoughrelativetothemarketsothatallindividualmarketagentcaninfluencethecommodity'

Ingeneral,aperfectmarketresultswhenthenumberofbuyersandsellersissufficientlylarge,andallparticipantsaresmallenoughrelativetothemarketsothatnoindividualmarketagentcaninfluencethecommodity’sprice.

14.4PerfectMarkets

14.4therequirementsofaperfectmarket

2）Aperfectmarketresultswhenallbuyersandsellersare________,andthemarketpriceisdeterminedwherethereis________.

A）price-takers;

equalityofsupplyanddemand.

B）price-makers;

C）price-takers;

inequalityofsupplyanddemand.

D）price-makers;

3）Amarketisnotperfectonlybecausemarketagentsarepricetakersbutisalsofreeoftransactionscostsandanyimpedimenttotheinteractionofsupplyanddemandforthecommodity.Economistsrefertothesevariouscostsandimpedimentsasfrictions.Frictionsinclude________.

A）bid-askspreadschargedbydealersandorderhandlingandclearancecharges.

B）taxes（butnotoncapitalgains）andgovernment-imposedtransferfees.

C）costsofacquiringinformationaboutthefinancialassetandrestrictionsonmarkettakers.

D）financialliabilitythatabuyerorsellermaytakeandtaxesoncapitalgains.

Amarketisnotperfectonlybecausemarketagentsarepricetakers.Aperfectmarketisalsofreeoftransactionscostsandanyimpedimenttotheinteractionofsupplyanddemandforthecommodity.Economistsrefertothesevariouscostsandimpedimentsasfrictions.Thecostsassociatedwithfrictionsgenerallyresultinbuyerspayingmorethanintheabsenceoffrictionsand/orinsellersreceivinglesscommissionschargedbybrokers.Frictionsinclude:

bid—askspreadschargedbydealers.

orderhandlingandclearancecharges.

taxes（notablyoncapitalgains）andgovernment-imposedtransferfees.

costsofacquiringinformationaboutthefinancialasset.

tradingrestrictions,suchasexchange-imposedrestrictionsonthesizeofapositioninthefinancialassetthatabuyerorsellermaytake.

restrictionsonmarketmakers.

haltstotradingthatmaybeimposedbyregulatorswherethefinancialassetistraded.

Top