ESSENTIALS OF INVESTMENTS
(GLOBAL EDITION) CHAPTER 3
QUESTIONS WITH CORRECT ANSWERS
2024
primaryOmarketO-OcorrectOanswer-marketOforOnewOissuesOofOsecurities
secondaryOmarketO-OcorrectOanswer-marketOforOalreadyOexcistingOsecurities
privateOplacementO-OcorrectOanswer-
primaryOofferingsOinOwhichOsharesOareOsoldOdirectlyOtoOaOsmallOgroupOofOinstitutionalsOorOwealthyOinvesto
rs
initialOpublicOofferingO(IPO)O-OcorrectOanswer-firstOsaleOofOstockObyOaOprivateOcompany
underwritersO-OcorrectOanswer-
underwritersOpurchaseOsecuritiesOfromOtheOissuingOcompanyOandOresellOthemOtoOtheOpublic
prospectusO-OcorrectOanswer-aOdescriptionOofOtheOfirmOandOtheOsecurityOitOisOissuing
dealerOmarketsO-OcorrectOanswer-
marketsOinOwhichOtradersOspecializingOinOparticularOassetsObuyOandOsellOforOtheirOownOaccounts
auctionOmarketO-OcorrectOanswer-aOmarketOwhereOallOtradersOmeetOatOoneOplaceOtoObuyOorOsellOanOasset
bidOpriceO-OcorrectOanswer-theOpriceOatOwhichOaOdealerOorOotherOtraderOwillOsellOaOsecurity
askOpriceO-OcorrectOanswer-theOpriceOatOwhichOaOdealerOorOotherOtraderOwillOsellOaOsecurity
bid-askOspreadO-OcorrectOanswer-theOdifferenceObetweenOtheObidOandOaskedOprice
(GLOBAL EDITION) CHAPTER 3
QUESTIONS WITH CORRECT ANSWERS
2024
primaryOmarketO-OcorrectOanswer-marketOforOnewOissuesOofOsecurities
secondaryOmarketO-OcorrectOanswer-marketOforOalreadyOexcistingOsecurities
privateOplacementO-OcorrectOanswer-
primaryOofferingsOinOwhichOsharesOareOsoldOdirectlyOtoOaOsmallOgroupOofOinstitutionalsOorOwealthyOinvesto
rs
initialOpublicOofferingO(IPO)O-OcorrectOanswer-firstOsaleOofOstockObyOaOprivateOcompany
underwritersO-OcorrectOanswer-
underwritersOpurchaseOsecuritiesOfromOtheOissuingOcompanyOandOresellOthemOtoOtheOpublic
prospectusO-OcorrectOanswer-aOdescriptionOofOtheOfirmOandOtheOsecurityOitOisOissuing
dealerOmarketsO-OcorrectOanswer-
marketsOinOwhichOtradersOspecializingOinOparticularOassetsObuyOandOsellOforOtheirOownOaccounts
auctionOmarketO-OcorrectOanswer-aOmarketOwhereOallOtradersOmeetOatOoneOplaceOtoObuyOorOsellOanOasset
bidOpriceO-OcorrectOanswer-theOpriceOatOwhichOaOdealerOorOotherOtraderOwillOsellOaOsecurity
askOpriceO-OcorrectOanswer-theOpriceOatOwhichOaOdealerOorOotherOtraderOwillOsellOaOsecurity
bid-askOspreadO-OcorrectOanswer-theOdifferenceObetweenOtheObidOandOaskedOprice