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Questions and Answers
What is the primary characteristic that distinguishes short-term markets from long-term markets?
Which of the following markets is NOT classified as a short-term market?
What is the term for the marketplace where financial instruments are traded?
Which of the following instruments is typically traded in a long-term market?
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What is the term for the market where instruments with maturities up to 180 days are issued and traded?
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What is the primary difference between OTC and exchange-traded financial markets?
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Which of the following is an example of a long-term market instrument?
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What is the term for the market where instruments with maturities from one year to perpetuity are issued and traded?
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What is a primary responsibility of the exchange in an 'Exchange Traded' transaction?
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What is a characteristic of Product Markets?
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What type of market is an example of a Factor Market?
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Who bears the counterparty risk in an Over-the-Counter (OTC) transaction?
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What is the primary difference between Product Markets and Factor Markets?
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What is the role of the market forces in Product Markets?
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What type of market is characterized by transactions executed through an exchange?
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What is the primary distinction between Equity Stock Markets and Product Markets?
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What is the basis of the return earned by equity investors in a firm?
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Why are equity investments considered riskier than bond investments?
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What is the ranking of claim on assets of a firm in the event of insolvency or shutdown?
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What is the liability of equity shareholders limited to?
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What characteristic of preference stocks distinguishes them from equity stocks?
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What is the ranking of claim on assets of preference shareholders compared to equity shareholders and bondholders?
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When are dividends paid out to preference shareholders?
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What is the key difference in the dividend structure between preference and equity stocks?
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What is the concept used to estimate the price of an equity stock?
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What is the similarity between the formula to estimate the price of equity stocks and bonds?
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What is the purpose of a privately held firm going public?
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What is the additional resource available to students to learn more about estimating the price of a stock?
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What is the outcome of a privately held firm going public?
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What is the principle used to estimate the price of equity stocks?
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What is the primary difference between the price of equity stocks and bonds?
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What is the purpose of the concept of time value of money?
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What term is used for the first issuance of equity stocks?
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Which entities act as intermediaries between firms issuing equity stocks and prospective investors?
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What additional role can intermediaries sometimes perform during the equity stock issuance process?
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What is the correct term for subsequent rounds of issuing equity stocks after the initial round?
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Which term describes the process of buying and selling equity stocks?
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Who typically pays an additional fee to the intermediaries in the equity stock issuance process?
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What is NOT included as a permitted use of the document by Prof P C Narayan?
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Which course is associated with the document authored by Prof P C Narayan?
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