Fundamentals of Investing 13th Edition

Fundamentals of Investing, 13e (Smart) Chapter 2 Securities Markets and Transactions 2.1 Learning Goal 1 1) Stocks, bonds and mutual fund shares are bought and sold in the capital market. Answer: TRUE Learning Outcome: F-01 Describe the different financial markets and the role of the financial managers AACSB: 8 Application of knowledge (Able to translate knowledge of business and management into practice) Question Status: Previous Edition Learning Goal: Learning Goal 1 2) Capital markets deal exclusively in stock. Money markets deal exclusively in debt instruments. Answer: FALSE Learning Outcome: F-01 Describe the different financial markets and the role of the financial managers AACSB: 8 Application of knowledge (Able to translate knowledge of business and management into practice) Question Status: Previous Edition Learning Goal: Learning Goal 1 3) Primary markets deal in the stocks of larger, well-known companies; secondary markets deal in the stocks of smaller, less well-known companies. Answer: FALSE Learning Outcome: F-01 Describe the different financial markets and the role of the financial managers AACSB: 8 Application of knowledge (Able to translate knowledge of business and management into practice) Question Status: Previous Edition Learning Goal: Learning Goal 1 4) Short-term securities are bought and sold in the A) capital market. B) primary market. C) money market. D) stock market. Answer: C Learning Outcome: F-01 Describe the different financial markets and the role of the financial managers AACSB: 8 Application of knowledge (Able to translate knowledge of business and management into practice) Question Status: Previous Edition Learning Goal: Learning Goal 1