Financial Markets Quiz

Who are the main participant in the financial markets?

• Issuers, financial intermediaries, legal advisors

• Investors, rating agencies, accounting firms

• Investors, issuers, investment banks

How is a primary market defined?

• The market for raising capital

• The market where risk is transferred from one investor to another

• None of them are correct

Some of the advantages for a company of going public are…

• Provide access to capital for growth, place an objective market value on the company´s business

• Additional financial and compliance reports, strong disclosure requirements

…while some of the disadvantages are…

• Additional financial and compliance reports, strong disclosure requirements

• Loss of some level of control, dilution for existing shareholders

OTC markets are…

• Decentralized markets in which market participants trade directly between two parties

• They have physical locations

• Trading is conducted electronically