Trivia Quiz: What Do You Know About Secondary Market?

11 Questions | Total Attempts: 537

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Market Quizzes & Trivia

This quiz relates to the secondary market for stock.


Questions and Answers
  • 1. 
    What happens if a stock is not listed?
    • A. 

      It cannot be publicly traded

    • B. 

      It can only trade as a NASDAQ stock

    • C. 

      The stock can be traded "over the counter"

    • D. 

      It faces a fine imposed by the SEC

  • 2. 
    What is the function of a market maker?
    • A. 

      Helps companies that are doing IPOs

    • B. 

      Sells stocks on behalf of clients for a commission

    • C. 

      Maintains an orderly market by buying or selling stock if their are no other buyers or sellers

    • D. 

      Ensures that brokers do not defraud their customers

  • 3. 
    How are stock prices determined in the secondary market?
    • A. 

      They are set by the corporation's CFO

    • B. 

      They are set by the corporation's Board of Directors

    • C. 

      They are set by the SEC

    • D. 

      Supply and demand

  • 4. 
    A financial professional who assists investors in the secondary market by providing access to the exchanges:
    • A. 

      Broker

    • B. 

      Market maker

    • C. 

      Investment banker

    • D. 

      CFO

  • 5. 
    A stock exchange on which all trades are electronic (there is no physical place where trading takes place):
    • A. 

      NYSE

    • B. 

      NASDAQ

    • C. 

      SEC

    • D. 

      CFO

  • 6. 
    One of the major stock exchanges:
    • A. 

      Philadelphia Stock Exchange

    • B. 

      NASDAQ

    • C. 

      Technology Stock Exchange

    • D. 

      Linked In

  • 7. 
    If a corporation is concerned about its ability to meet listing requirements, the best place for its stock to trade is
    • A. 

      On the NYSE

    • B. 

      In the over the counter market

    • C. 

      On the NASDAQ

    • D. 

      None of the above have listing requirements

  • 8. 
    Listing requirements vary among exchanges, but, in general, listing requirements do not require a corporation to have
    • A. 

      A profitable history

    • B. 

      A large market capitalization

    • C. 

      A large number of shareholders

    • D. 

      A history of paying dividends

  • 9. 
    At present, most stock trades are done
    • A. 

      By visiting the floor of the exchange

    • B. 

      On the phone

    • C. 

      Electronically

    • D. 

      By placing an offer on ebay

  • 10. 
    How many stocks are in the DOW?
    • A. 

      3,500

    • B. 

      2,000

    • C. 

      500

    • D. 

      30

  • 11. 
    Which exchange lists a large number of technology companies?
    • A. 

      SEC

    • B. 

      NYSE

    • C. 

      NASDAQ

    • D. 

      DOW

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