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SDSU BA 323 FINANCE EXAM 1 NEWEST 2026-2027
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |A+ GRADED|BRAND NEW!!
How does We illustrate how the IPO process works? -
ANSWER-WeWork had to be underwritten and several
risk were detected.
•Describe the capital allocation process and what role the
suppliers of capital plays and the role that the users of
capital play.
•Why is the financial system often described as the
circulatory system of the economy? - ANSWER-An
economy consist of suppliers of capital and users of
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capital. Suppliers have excess funds that they would use
to invest in exchange for a return on their investments.
Users are those that need funds and seek out suppliers for
capital.
Who are suppliers of capital? Who are providers of
capital? Can an entity be both at the same time? -
ANSWER-Suppliers of capital include retail and
institutional investors while users of capital are
businesses, governments, and people.
•What is a market?
•What is the main difference between private and public
markets? - ANSWER-A market is a venue where goods
and services are exchanged. Private markets are
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negotiated directly between parties (bank loans) while
public markets are standardized contracts traded on
organized exchanges (NYSE).
•The derivative market exceeds 700 trillion. What type of
derivative is most common? - ANSWER-Derivatives are
like contracts. An individual pays for a product/service in
its current value but would receive that at a later date.
Forwards, futures, options, and swaps are the most
common types of derivative.
Know the difference between primary and secondary
market transactions and be able to identify one from the
other. - ANSWER-Primary market is the market in which
corporations raise new capital by selling new stock. The
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secondary market involves trading existing securities
among investors and does not involve any new inflows of
funds to the corporation.
•What are the five different types of financial markets?
•Know the difference between each type of market -
ANSWER-Physical assets vs Financial assets
Spot vs Futures
Money vs Capital
Primary vs secondary
SDSU BA 323 FINANCE EXAM 1 NEWEST 2026-2027
ACTUAL EXAM COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |A+ GRADED|BRAND NEW!!
How does We illustrate how the IPO process works? -
ANSWER-WeWork had to be underwritten and several
risk were detected.
•Describe the capital allocation process and what role the
suppliers of capital plays and the role that the users of
capital play.
•Why is the financial system often described as the
circulatory system of the economy? - ANSWER-An
economy consist of suppliers of capital and users of
,2|Page
capital. Suppliers have excess funds that they would use
to invest in exchange for a return on their investments.
Users are those that need funds and seek out suppliers for
capital.
Who are suppliers of capital? Who are providers of
capital? Can an entity be both at the same time? -
ANSWER-Suppliers of capital include retail and
institutional investors while users of capital are
businesses, governments, and people.
•What is a market?
•What is the main difference between private and public
markets? - ANSWER-A market is a venue where goods
and services are exchanged. Private markets are
,3|Page
negotiated directly between parties (bank loans) while
public markets are standardized contracts traded on
organized exchanges (NYSE).
•The derivative market exceeds 700 trillion. What type of
derivative is most common? - ANSWER-Derivatives are
like contracts. An individual pays for a product/service in
its current value but would receive that at a later date.
Forwards, futures, options, and swaps are the most
common types of derivative.
Know the difference between primary and secondary
market transactions and be able to identify one from the
other. - ANSWER-Primary market is the market in which
corporations raise new capital by selling new stock. The
, 4|Page
secondary market involves trading existing securities
among investors and does not involve any new inflows of
funds to the corporation.
•What are the five different types of financial markets?
•Know the difference between each type of market -
ANSWER-Physical assets vs Financial assets
Spot vs Futures
Money vs Capital
Primary vs secondary
