fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
181) The secondary market is:
A) The market for the original sale of securities by governments and corporations.
B) The market in which dealers buy and sell for themselves, at their own risk.
C) The market in which purchasers are matched with those who wish to sell.
D) A market which has no central location.
E) The market in which securities are bought and sold after original sale.
182) The term capital structure describes:
A) The mixture of debt and equity a firm uses to finance its operations.
B) The mixture of long-term investments a firm has made.
C) The mix of preferred stock and common stock that makes up the equity account of a firm.
D) The firm's short-term assets and short-term liabilities.
E) The mixture of short-term liabilities a firm uses to finance its short-term assets.
183) Capital structure refers to:
A) The amount of inventory held.
B) The amount of cash on hand.
C) The mixture of debt and equity.
D) The accounts receivable policy.
E) The management of long-term investments.
184) Working capital management refers to:
A) The types of stock issued.
B) The amount of long-term debt.
C) The mixture of debt and equity.
D) The types of long-term investments made.
E) The levels of cash and inventory held.
185) Which of the following statements concerning auction markets is false?
A) The OTC is an auction market.
B) The TSX is an auction market.
C) The NYSE is an auction market.
D) Auction markets have a physical location.
E) A market where buyers specify the highest price they are willing to pay and sellers indicate the lowest price they are willing to accept.
186) Which of the following statements concerning dealers is false?
A) Dealers usually buy and sell only for themselves.
B) Dealers accept the risks of owning shares of stock.
C) The OTC market is a dealer market.
D) Most debt securities trade in dealer markets.
E) The TSX and NYSE are dealer markets.
187) Which one of the following statements is true concerning stock exchanges?
A) The Toronto Stock Exchange is the largest exchange in the world.
B) NASDAQ listed stocks trade more actively than those listed on the NYSE.