BFIN 300 Exam 2 Questions with 100%
Correct Answers
Stock Markets
buying and selling shares of a publicly traded company
Bond Markets
trading of trading or fixed income securities
Commodity Markets
oil, gold, raw materials
Foreign Exchange Markets
trading of currency's
Derivatives Markets
where traders buy and sell financial instruments like futures and options that derive their
value from underlying assets such as stocks, bonds, or commodities
Security
a claim against assets and cash flows of earnings
Primary Markets
original or first sale of a security
Secondary Market
security bought and sold after ipo (initial public offering), example any public stock (tesla,
amazon, apple)
, Residual Value
what a business is worth to cover liability and expenses
Principal Regulator
of financial markets in USA is the SEC (Security Exchange Commission)
Investment Banks
work in marketplace with issue of security
Issue of Security
distribute new securities in primary markets and investment banks link investor to that
Underwrite
purchasing securities
Liquidity
how fast and efficiently turning assets into cash
Stock Exchanges
formal organization approved and regulated by the SEC
NYSE
is the largest stock exchange in the world (10 trillion)
Money Markets
debt securities with original maturity of one year or less (short term market)
Spot Exchange Rate
the present market price of trading a particular currency with another currency
Correct Answers
Stock Markets
buying and selling shares of a publicly traded company
Bond Markets
trading of trading or fixed income securities
Commodity Markets
oil, gold, raw materials
Foreign Exchange Markets
trading of currency's
Derivatives Markets
where traders buy and sell financial instruments like futures and options that derive their
value from underlying assets such as stocks, bonds, or commodities
Security
a claim against assets and cash flows of earnings
Primary Markets
original or first sale of a security
Secondary Market
security bought and sold after ipo (initial public offering), example any public stock (tesla,
amazon, apple)
, Residual Value
what a business is worth to cover liability and expenses
Principal Regulator
of financial markets in USA is the SEC (Security Exchange Commission)
Investment Banks
work in marketplace with issue of security
Issue of Security
distribute new securities in primary markets and investment banks link investor to that
Underwrite
purchasing securities
Liquidity
how fast and efficiently turning assets into cash
Stock Exchanges
formal organization approved and regulated by the SEC
NYSE
is the largest stock exchange in the world (10 trillion)
Money Markets
debt securities with original maturity of one year or less (short term market)
Spot Exchange Rate
the present market price of trading a particular currency with another currency
