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Brooklyn College FINC3377 Global Financial Management negartment ot Fleance 21. Cross-listing and selling on foreign stock exchanges will Department of Finance Professor: H.J. Abraham Lin a- reduce the liquidity of its existing and new shares b. lead to mispricing in a segmented and c. decrease visibility and political acceptance d. establish management and employees in foreign subsidiaries a secondary market for shares used for acquisitions or to compensate local 22. which of the following is not the capital market imperfections a. Asymmetric information b. Full disclosure c. High transaction costs d. Political risks e. Regulatory barriers 23. Example: Ford purchases from Mazda in Japanese yen at the spot rate if between 115s and x125/S. I If it falls outside the range, they share the difference equally. This is an example of a. Matching currency cash flows b. Risk-sharing agreements c. Back-to-back or parallel loans d. Currency swaps e. Natural hedge 24. The negotiable certificates issued by a bank to represent the underlying shares of stock, which are held in trust at a foreign custodian bank are a. DRs b. IPOs c. SEOS d. Euroequities e. Money markets 25. "Sale of securities to a small qualified institutional companies and investment companies" means l set of qualified institutional buyers (Q18), traditionally insurance a. private placements b. cross-listed ic appliances

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