BUSI 320 Read & Interact Chapter 14 Assignment solutions complete answers

BUSI 320 Read & Interact Chapter 14 Assignment solutions complete answers 

 

The U.S. Treasury’s management of the federal government’s debt is part of its        policy.

 

Market        is a subject of ongoing research to identify the ability of securities markets to absorb information and adjust stock prices.

 

The NASDAQ Stock Market differs from the NYSE in that there is no _____ location and there are no designated _____ makers that are obligated to buy and sell securities.

 

In        trading, funds flow between investors.

 

State and local securities are        from federal income taxes, meaning that investors do not pay federal income       on the interest they receive.

 

A company’s capital structure is composed of its       term liabilities and      .

 

Capital markets provide a place for firms to       capital and for individuals to        in promising business opportunities.

 

Companies list their shares on international exchanges to _______ equity at the _______ cost.

 

The         credit agencies are governmental units that issue their securities on a separate basis from those securities sold directly by the U.S. Treasury.

 

The key variable affecting market efficiency is the _______ of the income steam.

 

The US treasury ________ short-term securities when the government spends more money than it receives in tax revenue, and _________ short-term securities when it receives more tax revenue than it spends.

 

ECNs have transformed security markets by    .

 

Smaller companies choose to list on the NASDAQ instead of the NYSE because the listing requirements are _________.

 

Which of the following financial metrics are used as standards for listing on an exchange?

 

A market for a company's equity is called a capital market because equity is a ________ term security.

 

Which of the following events have contributed to the worldwide demand for capital?

 

Identify the primary reasons cited in the text that foreigners desire to invest in the U.S.

 

Which of the following was a key component of the Sarbanes-Oxley act of 2002?

 

The forms of efficient market hypothesis are ______.

 

Households funnel savings to intermediaries who invest them in the ____ market.

 

ECN's rely on __________ to match buy and sell orders, instead of a trading _________ at a traditional exchange.

 

Securities law make the markets more competitive and _____ by forcing disclosure of relevant _____ ______.

 

Markets are generally said to be efficient if prices _______ rapidly to new information, there is a _______ market, and if the market can ________ large dollar amounts of trades without destabilizing prices.

 

Which of the following securities are a part of a firm's capital structure?

 

Corporations benefit from liquid security markets because they can raise funds     at     prices.

 

Security markets exist to allocate capital among which of the following?

 

If the cost of capital is high and credit is difficult to find, then the market must be __________.

 

Financial intermediaries make the flow of funds from one sector of the economy to another very ________ and ________.

 

To calculate internally generated funds available for investment, we typically start with Net Income and add back    .

 

Choose all that apply: Preferred stock is usually issued by companies that have which of the following characteristics?

 

Which of the following are typically net demanders of capital?

 

Capital markets are a mechanism for _________ capital to the most _______ user.

 

Capital markets provide a place for firms to ________ capital and for individuals to _______ capital.

 

How does the relationship between risk and expected return serve to allocate capital in a market?

 

Identify the primary ways that ECNs are different from traditional exchanges. Choose all that apply.

 

A primary variable that influences the market for securities is        .

 

Capital market securities include    .

 

 

3.
capital markets provide a place for
 
 
5.
corporate bonds make up the majority of financing transactions by corporations because _____________
 
 
6.
different exchanges have _________ requirements that must be met before an equity can be ____________
 
 
9.
if financial intermediaries did not exist, the cost of capital would be___________, and funds would not be allocated to the best users at the ___________ costs
 
 
10.
in a __________ market funds flow to the corporation, in a ______________ market funds flow between investors
 
 
13.
markets are said to be efficient if prices reflect all publicly available
 
 
14.
personal income that is saved and funneled to financial intermediaries are known as _________ investment
 
 
16.
State and local securities are tax ________, by the federal government, meaning that investors do not pay income__________ on the interest that they receive
 
 
18.
true or false: capital markets are a way of allocating capital to its most efficient use
 
 
19.
True or false: in general, communication system and greater disclosure make markets less efficient
 
 
20.
The US treasury security had an __________ guarantee, federally sponsored agency debt has an __________ guarantee
 
 
22.
variables that effect capital markets include ____________
 
 
23.
what event has contributed to the worldwide demand for capital
 
 
24.
what was a key component of the sarbanes-oxley act of 2002?
 
 
25.
which security is part of a firms capital structure
 
 
 
 
 
 
 
 
 

 

2.
Capital markets provide a place for _______.
 
 
6.
Corporate bonds make up the majority of financing transactions by corporation because ___________.
 
 
7.
Different exchanges have _________ requirements that must be met before an equity can be ________.
 
 
15.
If financial intermediaries did not exist, the cost of capital would be _______, and funds would not be allocated to the best users at the ______ cost.
 
 
16.
If financial intermediaries did not exist, the cost of capital would be ________ , and funds would not be allocated to the best users at the _________ cost.
 
 
18.
In a _______ market funds flow to the corporation, in a ______ market funds flow between investors.
 
 
19.
Investors benefit from liquid security markets because they can transform a ________ asset into _______.
 
 
20.
Investors want to _______ their return for a given level of risk, thus riskier investments have a ________ expected return.
 
 
24.
The NASDAQ Stock Market differs from the NYSE in that there is no ________ location and there are no ________ that are obligated to buy and sell securities.
 
 
25.
Personal income that is saved and funneled to financial intermediaries in known as ___________ investment.
 
 
26.
Preferred stock is the least used financing option because the _________ are not tax deductible like interest, and companies that tend to issue it are near their debt ________.
 
 
27.
The primary purpose of The Securities Exchange Act of 1934 was to create the _______ which became the primary ________ of securities laws that govern the exchanges and the listed companies.
 
 
28.
The Securities act of 1933 force companies to provide full _______ of relevant information whenever a company sold a new issue of ______ to the _________.
 
 
29.
Securities laws strive to protect ________ from _________ and manipulation.
 
 
32.
The Specialist or DMM on the NYSE is always ______ and ______ to buy and sell shares that are listed on the exchange.
 
 
33.
State and local securities are tax ________ by the federal government, meaning investors do not pay federal income _______ on the interest they receive.
 
 
35.
True or False: In general, communication systems are greater disclosure make markets less efficient.
 
 
37.
Variables that effect capital markets include __________.
 
 
38.
Where as US Treasury security has an _______ guarantee, federally sponsored agency debt has an ________ guarantee.
 
 
 
 
 
 
 
 
 
 
 

 

 

4.
capital markets provide a place for
 
 
6.
corporate bonds make up the majority of financing transactions by corporations because
 
 
8.
different exchanges have ______ requirements that must be met for an equity can be ____
 
 
14.
identify the primary ways that ECNs are diff. from traditional exchanges
 
 
16.
if financial intermediaries did not exist, the cost of capital would be ____, and funds would not be allocated to the best users at the ___ cost
 
 
18.
internally generated funds are represented by which of the following
 
 
20.
Investors want to ____ their return for a given level of risk, thus riskier investments have a ____ expected return.
 
 
24.
markets are said to be efficient if prices reflect all publicly available _____
 
 
25.
NASDAQ stock market differs from the NYSE in that there is no _____ location and there are no _____ that are obligated to buy and sell securities
 
 
26.
personal income that is saved and funneled to financial intermediaries is known as ____ investment
 
 
27.
preferred stock is the least used financing option because the ____ are not tax deductible like interest and companies that tend to issue it are near their debt ____
 
 
28.
preferred stock is the least used financing option because the ____ are not tax deductible like interest, and companies that tend to issue it are near their debt ____
 
 
30.
securities act of 1933 forced companies to provide full _____ of relevant information whenever a company sold a new issue of ____
 
 
32.
securities laws strive to protect unwary ____ from _____ and manipulation
 
 
34.
security markets exist to ____ capital among households, corporations, and government
 
 
36.
state and local securities are tax ____ by the federal government meaning that investors do not pay federal income ____ on the interest they receive
 
 
37.
T/F: capital markets are a way of allocating capital to its most efficient user
 
 
39.
variables that effect capital markets include