Stock Market 1

In which market are new securities created and sold to the public for the first time?

• Primary market

• Secondary market

• Over-The-Counter market

• Tertiary market

Why do people invest in stocks?

• To guarantee fixed returns

• To avoid risks associated with the stock market

• To share in company profits and ownership

• To receive government subsidies

What is the main difference between debt and equity capital?

• Debt capital requires repayment with interest, while equity capital does not.

• Equity capital requires repayment with interest, while debt capital does not.

• Debt capital is represented by assets, while equity capital is represented by securities.

• Equity capital comes with the burden of interest payments, while debt capital does not.

Which sector has played a leading role in the recent market surge in Vietnam?

• Technology

• Healthcare

• Real estate

• Banking

What is the primary purpose of the secondary market?

• Issuing fresh shares in the market

• Trading existing shares between investors

• Providing liquidity for the stock

• Facilitating IPOs

What type of stock is typically issued by large, stable companies with dependable earnings?

• Growth stocks

• Speculative stocks

• Blue chip stocks

• Penny stocks

What profit growth expectations do analysts predict for the largest companies in Vietnam?

• 5-7%

• 10-12%

• 16-18%

• 20-22%

What role do underwriters play in the primary market?

• Facilitating trades between investors

• Ensuring liquidity for newly issued securities

• Acting as intermediaries between issuers and investors

• Guaranteeing fixed returns on investment

How can corporations raise capital?

• Issuing bonds

• Selling shares of stock

• Both selling stocks and issuing bonds

• Borrow money from banks

What is a potential limitation of investing in real estate compared to the stock market?

• High liquidity

• Low capital requirement

• High risk

• High transparency