Understanding Financial Markets and Money Markets
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Questions and Answers

What type of market transaction is it when San Miguel Corporation sells a new stock for the first time to the public?

  • Quaternary market transaction
  • Secondary market transaction
  • Primary market transaction (correct)
  • Tertiary market transaction
  • Who assists the issuer of a new security in setting the offering price and marketing the securities to the public?

  • Underwriter (correct)
  • Portfolio manager
  • Financial analyst
  • Stockbroker
  • In which market can investors buy and sell securities after they have been issued in the primary market?

  • Secondary market (correct)
  • Quaternary market
  • Primary market
  • Tertiary market
  • What is the purpose of a secondary market transaction in buying shares of a company like San Miguel Corporation?

    <p>To buy shares from existing shareholders</p> Signup and view all the answers

    Which type of market gives a continuous reflection of the value of securities according to the best available information?

    <p>Secondary market</p> Signup and view all the answers

    Where can secondary market transactions take place, besides the stock exchange?

    <p>Over-the-counter (OTC) market</p> Signup and view all the answers

    What is the key difference between the money market and the capital market?

    <p>Money market deals with short-term funds, while capital market deals with long-term funds.</p> Signup and view all the answers

    In which market are long-term debt securities such as bonds traded?

    <p>Capital market</p> Signup and view all the answers

    Where are new shares issued and sold to the investing public for the first time?

    <p>Primary market</p> Signup and view all the answers

    What type of securities are typically traded in the stock market?

    <p>Equity securities or stocks</p> Signup and view all the answers

    Where does an investor buy and sell stocks, according to the text?

    <p>Secondary market</p> Signup and view all the answers

    What is the primary function of the money market as described in the text?

    <p>Buying and selling short-term debt securities</p> Signup and view all the answers

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