1. Trades on the NYSE are generally completed by having abrokerage firm acting as a "dealer" buy securities and adding themto its inventory or selling from its inventory. The NASDAQ, on theother hand, operates as an auction market, where buyers offer tobuy, and sellers to sell, and the price is negotiated on the floorof the exchange.

True or False

2.

Which of the following is an example of a capital marketinstrument?

	a.	Preferred stock.
	b.	Money market mutual funds.
	c.	Commercial paper.
	d.	U.S. Treasury bills.
	e.	Banker's acceptances.

3. The NYSE is defined as a "spot" market purely and simplybecause it has a physical location. The NASDAQ, on the other hand,is not a spot market because it has no one central location.

True or False

4. Each stock's rate of return in a given year consists of adividend yield (which might be zero) plus a capital gains yield(which could be positive, negative, or zero). Such returns arecalculated for all the stocks in the S&P 500. A weightedaverage of those returns, using each stock's total market value, isthen calculated, and that average return is often used as anindicator of the "return on the market."

True or False

5.

The NYSE is defined as a "primary" market because it is one ofthe largest and most important stock markets in the world.

True or False

6.

The term IPO stands for "individual purchase order," as when anindividual (as opposed to an institution) places an order to buy astock.

True or False