Investment Analysis and Portfolio Management (TRUE&
FALSE ) QUESTIONS AND ANSWERS
Market is the means through which buyers and sellers are brought together to aid in the
transfer of goods and/or services -correct answer- True
A market needs to have a physical location -correct answer- False
A market does not necessarily own the goods or services involved -correct answer-
True
Timely and accurate information on the price and volume of past transactions is one of
the characteristics of a good market -correct answer- True
A good market should have high transaction costs -correct answer- False
Primary capital markets are where new issues of bonds, preferred stock, or common
stock are sold by government units, municipalities, or companies that want to acquire
new capital -correct answer- True
Private placements involve the sale of a bond issue by the issuer directly to an investor
or a small group of investors (usually institutions). -correct answer- True
Pure auction market and dealer market are the two major trading systems -correct
answer- True
A continuous market is where trades occur at any time the market is open wherein
stocks are priced either by auction or by dealers -correct answer- True
Third market involves dealers and brokers who trade shares that are listed on an
exchange away from the exchange. -correct answer- True
Indexes are used as benchmarks to evaluate portfolio performance -correct answer-
True
You only need 1 index to evaluate the performance of your investment -correct answer-
False
You can pick any index to help you when investing -correct answer- False
There are 5 main uses of security market indexes -correct answer- True
FALSE ) QUESTIONS AND ANSWERS
Market is the means through which buyers and sellers are brought together to aid in the
transfer of goods and/or services -correct answer- True
A market needs to have a physical location -correct answer- False
A market does not necessarily own the goods or services involved -correct answer-
True
Timely and accurate information on the price and volume of past transactions is one of
the characteristics of a good market -correct answer- True
A good market should have high transaction costs -correct answer- False
Primary capital markets are where new issues of bonds, preferred stock, or common
stock are sold by government units, municipalities, or companies that want to acquire
new capital -correct answer- True
Private placements involve the sale of a bond issue by the issuer directly to an investor
or a small group of investors (usually institutions). -correct answer- True
Pure auction market and dealer market are the two major trading systems -correct
answer- True
A continuous market is where trades occur at any time the market is open wherein
stocks are priced either by auction or by dealers -correct answer- True
Third market involves dealers and brokers who trade shares that are listed on an
exchange away from the exchange. -correct answer- True
Indexes are used as benchmarks to evaluate portfolio performance -correct answer-
True
You only need 1 index to evaluate the performance of your investment -correct answer-
False
You can pick any index to help you when investing -correct answer- False
There are 5 main uses of security market indexes -correct answer- True
