A) Because it deals in money and bills of materials (на предметы материально-технического

Обеспечения).

B) Because it deals in money, certificates of ownership, and certificates of debt.

C) Because it deals in money, commodity contracts, and contracts of sale, etc.

2. Securities are traded in primary and secondary markets. Which of the two markets is preferable?

A) When a corporation decides to issue stock to the public, it is all the same to it in which

Market to trade. The main thing is that the money received goes to the company.

B) When a corporation decides to issue stock to the public, it is undertaking a primary distribution.

This first sale is in the secondary market.

C) When a corporation decides to issue stock to the public, it is undertaking a primary distribution.

This first sale of stock is in the primary market, and the money received goes to the

Company.

3. What is the main reason for buying stock in the secondary market?

A) It is a pure speculation — the hope that the value of the stock will increase so it can be sold at

A profit.

B) It is a mere investment — as buying gold.

c) It is a kind of savings: to keep it and wait to collect dividends.

4. When stocks are traded in the secondary market, the money goes:

A) To the company which issued it.

B) To the seller, minus a commission for the broker.

C) To the company and to the seller in a certain ratio, minus a commission for the broker.

5. When a market crashes, the fal ocurs: