【正文】 16.You purchased 100 shares of IBM mon stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assum。$7,200.200 shares $60/share = $12,000 = $7,200.$12,000.C.A.15.You sold short 200 shares of mon stock at $60 per share. The initial margin is 60%. Your initial investment was$6,300200 shares $70/share (1 ) = $14,000 () = $6,300.$7,700D.$6,000B.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediates missions, dealer39。s bidasked spread.E.broker39。s bidasked spread.C.s missions.B.A.13.The cost of buying and selling a stock consists ofNone of the options is subject to insider trading restrictions.Corporate officers, corporate directors, and major stockholders are corporate insiders and are subject to restrictions on trading on inside information. Further, the Supreme Court held that traders may not trade on nonpublic information even if they are not insiders.major stockholders.D.corporate officers.B.AACSB: AnalyticBlooms: ApplyDifficulty: IntermediateIf stock ABC is selling at $50, a limitbuy order may instruct the broker to buy the stock if and when the share price falls below $45.D.A market order is simply an order to buy or sell a stock immediately at the prevailing market price.B.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediatedayorder.E.limitbuy order.C.A.10.You sold JCP stock short at $80 per share. Your losses could be minimized by placing aNone of the optionsWith a limitsell order, your stock will be sold only at a specified price, or better. Thus, such an order would protect your gains. None of the other orders are applicable to this situation.market order.D.stopbuy order.B.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediatethe New York Stock Exchange.D.the Securities and Exchange Commission.B.AACSB: AnalyticBlooms: ApplyDifficulty: Intermediatetransactions on the AMEX and in the OTC market.E.transactions in the OTC market.C.A.7.The secondary market consists ofagrees to help the firm sell the stock at a favorable price and finds the best marketing arrangement for the investment banking firm.In a firm mitment, the investment banker buys the stock from the pany and resells the issue to the public.agrees to help the firm sell the stock at a favorable price.C.A.6.In a firm mitment, the investment bankeract as intermediaries between issuers of stocks and investors and act as advisors to panies in helping them analyze their financial needs and find buyers for newly issued securities.The role of the investment banker is to assist the firm in issuing new securities, both in advisory and marketing capacities. The investment banker does not have a role parable to a mercial bank, as indicated in accept deposits from savers and lend them out to panies.act as advisors to panies in helping them analyze their financial needs and find buyers for newly issued securities.C.A.5.Investment bankers functions are all of the items listed. In addition, specialists trade in their own accounts.Specialists cannot trade in their own accounts.E.Specialists earn ine from missions and spreads in stock prices.C.A.4.Which of the following statements regarding the specialist are true?only on days when the market is up.Funds from the sale of new issues flow to the issuing corporation, making this a primary market transaction.in the primary market.C.A.3.Firms raise capital by issuing stockin the primary market and usually with the assistance of an investment banker.Funds from the sale of new issues flow to the issuing corporation, making this a primary market transaction. Investment bankers usually assist by pricing the issue and finding buyers.usually with the assistance of an investment banker.D.in the secondary market.B.AACSB: AnalyticBlooms: ApplyDifficulty: Basicusually with the assistance of an investment banker.D.in the secondary market.B.Multiple Choice QuestionsChapter 03 How Securities Are Traded Key69.List three factors that are listing requirements for the New York Stock Exchange. Why does the exchange have such requirements?68.Discuss margin buying of mon stocks. Include in your discussion the advantages and disadvantages, the types of margin requirements, how these requirements are met, and who determines these requirements.the employer.E.the profession.C.A.67.According to the CFA Institute Standards of Professional Conduct, CFA Institute members have responsibilities to all of the following excepts financial situationE.Disclosure of all conflicts to clients and prospectsD.Disclosure of all personal investments, whether or not they may conflict with a client39。A.66.Which of the following is not required under the CFA Institute Standards of Professional Conduct?I, II, and IVE.I, II, III, IV, V, and VIC.A.65.The Securities Act of 1934I) requires full disclosure of relevant information relating to the issue of new securities.II) requires registration of new securities.III) requires issuance of a prospectus detailing financial prospects of the firm.IV) established the SEC.V) requires periodic disclosure of relevant financial information.VI) empowers SEC to regulate exchanges, OTC trading, brokers, and dealers.I, II, and IVE.I, II, III, IV, V, and VIC.A.64.The securities act of 1933I) requires full disclosure of relevant information relating to t