Securities

Which characteristic is not related to capital markets?

• instruments for medium or long term
• financial market
• discount treasury bill
• mortgage loans

Securities are first sold in the secondary market by the issuer.

• True
• False

Another name of the stock exchange is OTC market.

• True
• False

Direct financing means that

• investors directly invest in a company
• investors use financial intermediaries to invest
• investors invest in companies through the banking system
• all of the above

Which is not a property right that a security embodies?

• debt
• equity
• reserve
• commodity

What is the face value of a security?

• It's the market price
• It'ss the minimum value that it should be sold at
• It means the ownership proportion in a company
• It shows the value of debt, property or commodity

The yield of a security

• is always floating
• is always fixed
• is the interest
• is the profit on investment

The face value of a bond represents

• the amount that the company owes to the bondholder
• the proportion of property rights
• the yield on the investment
• the market price

Which has the lowest risk?

• shares
• bonds
• money market funds
• government bonds

Which might make the greatest yield?

• shares
• bonds
• money market funds
• government bonds