金融市场与金融机构基础-Fabozzi-Chapter13

1Copyright©2010PearsonEducationInc.PublishingasPrenticeHallFoundationsofFinancialMarketsandInstitutions,4e(Fabozzi/Modigliani/Jones)Chapter13PrimaryMarketsandtheUnderwritingofSecuritiesMultipleChoiceQuestions1TheTraditionalProcessforIssuingNewSecurities1)The________involvesthedistributiontoinvestorsofnewlyissuedsecuritiesbycentralgovernments,itsagencies,municipalgovernments,andcorporationsA)OTCmarketB)secondarymarketC)primarymarketD)stockmarketAnswer:CDiff:1Topic:13.1TheTraditionalProcessforIssuingNewSecuritiesObjective:13.1theroleinvestmentbankersplayinthedistributionofnewlyissuedsecurities2)Theparticipantsinthemarketplacethatworkwithissuerstodistributenewlyissuedsecuritiesarecalledinvestmentbankers.Investmentbankingisperformedbytwogroups:________.A)commercialbanksandsecuritieshouses.B)hometownbanksandsecuritieshouses.C)commercialbanksandbankhouses.D)savings&loansandbankhouses.Answer:ADiff:2Topic:13.1TheTraditionalProcessforIssuingNewSecuritiesObjective:13.1theroleinvestmentbankersplayinthedistributionofnewlyissuedsecurities3)ThetraditionalprocessintheUnitedStatesforissuingnewsecuritiesinvolvesinvestmentbankersperforminguptothreefunctions.WhichofthebelowisNOToneofthesefunctions?A)Onefunctionisadvisingtheissueronthetermsandthetimingoftheoffering.B)Onefunctionissellingthesecuritiestotheissuer.C)Onefunctionisdistributingtheissuetothepublic.D)Onefunctionisbuyingthesecuritiesfromtheissuer.Answer:BComment:ThetraditionalprocessintheUnitedStatesforissuingnewsecuritiesinvolvesinvestmentbankersperformingoneormoreofthefollowingthreefunctions:(1)advisingtheissueronthetermsandthetimingoftheoffering,(2)buyingthesecuritiesfromtheissuer,and(3)distributingtheissuetothepublic.Diff:1Topic:13.1TheTraditionalProcessforIssuingNewSecuritiesObjective:13.1theroleinvestmentbankersplayinthedistributionofnewlyissuedsecurities2Copyright©2010PearsonEducationInc.PublishingasPrenticeHall4)Aninvestmentbankermaymerelyactasanadvisorand/ordistributorofthenewsecurity.Thefunctionofbuyingthesecuritiesfromtheissueriscalled________.A)advising.B)distributing.C)purchasing.D)underwriting.Answer:DDiff:2Topic:13.1TheTraditionalProcessforIssuingNewSecuritiesObjective:13.1theroleinvestmentbankersplayinthedistributionofnewlyissuedsecurities5)An________isacommonstockofferingissuedbycompaniesthathaveNOTpreviouslyissuedcommonstocktothepublic.A)initialprivateissuance(IPI)B)seasonedequityoffering(SEO)C)initialpublicoffering(IPO)D)seasonedoffering(SO)Answer:CDiff:1Topic:13.1TheTraditionalProcessforIssuingNewSecuritiesObjective:13.1theroleinvestmentbankersplayinthedistributionofnewlyissuedsecurities6)WhichofthebelowstatementsisFALSE?A)Asecondarycommonstockofferingisanofferingofcommonstockthathadbeenissuedinthepastbythecorporation.B)Forasecondaryoffering,therangeforthegrossspreadasapercentageoftheamountraisedisbetween3%and6%.C)Fortraditionalbondofferings,thegrossspreadasapercentageoftheprincipalisaround100basispoints.D)Thetypicalunderwrittentransactioninvolvessomuchriskofcapitallossthatasingleinvestmentbankingfirmundertakingitalonewouldbeexposedtothedangeroflosingasignificantportionofitscapital.Answer:CComment:Fortraditionalbondofferings,thegrossspreadasapercentageoftheprincipalisaround50basispoints.Diff:2Topic:13.1TheTraditionalProcessforIssuingNewSecuritiesObjective:13.2theriskassociatedwiththeunderwritingofasecurity3Copyright©2010PearsonEducationInc.PublishingasPrenticeHall2RegulationofthePrimaryMarket1)Underwritingactivitiesareregulatedbythe________.A)InitialPublicOfferingsMarket(IPOM).B)SecuritiesandExchangeCommission(SEC).C)InvestmentBankingIndustry(IBI).D)FederalBureauofInvestigation(FBI).Answer:ADiff:1Topic:13.2RegulationofthePrimaryMarketObjective:13.4howtheSECregulatesthedistributionofnewlyissuedsecurities2)Thetypeofinformationcontainedintheregistrationstatementincludes________.A)thenatureofthebusinessoftheissuerandkeyprovisionsorfeaturesofthesecurity.B)thenatureoftheinvestmentrisksassociatedwiththesecurityandthebackgroundofmanagement.C)thenatureofthebusinessoftheissuerandthebackgroundofmanagement.D)AlloftheseAnswer:DComment:Thetypeofinformationcontainedintheregistrationstatementisthenatureofthebusinessoftheissuer,keyprovisionsorfeaturesofthesecurity,thenatureoftheinvestmentrisksassociatedwiththesecurity,andthebackgroundofmanagement.Diff:2Topic:13.2RegulationofthePrimaryMarketObjective:13.5whataregistrationstatementis3)Theregistrationisactuallydividedintotwoparts.PartIisthe________.Itisthispartthatistypicallydistributedtothepublicasanofferingofthesecurities.PartIIcontains________,whichisnotdistributedtothepublicaspartoftheofferingbutisavailablefromtheSECuponrequest.A)registration;additionalinformationB)prospectus;supplementalinformationC)supplementalinformation;registrationD)beginninginformation;prospectusAnswer:BDiff:2Topic:13.2RegulationofthePrimaryMarketObjective:13.5whataregistrationstatementis4Copyright©2010PearsonEducationInc.PublishingasPrenticeHall4)TheSecuritiesActof1933________.A)doesnotprovideforpenaltiesintheformoffinesand/orimprisonmentift