11. Which market facilitates the trading of already issued securities between investors?
a. Primary market
b. Secondary market
c. Tertiary market
d. Derivatives market
12. What is the main purpose of a stock exchange?
a. Facilitating the trading of stocks and bonds
b. Providing loans to companies for expansion
c. Regulating the issuance of government securities
d. Setting interest rates for commercial loans
13. What is the difference between common stock and preferred stock?
a. Common stockholders have voting rights, while preferred stockholders do not.
b. Preferred stockholders have higher priority for dividends than common stockholders.
c. Common stockholders receive fixed interest payments, while preferred stockholders receive variable payments.
d. Preferred stockholders have higher capital gains potential than common stockholders.
14. Which of the following is an example of a derivative instrument?
a. Corporate bond
b. Treasury bill
c. Options contract
d. Money market fund
15. What is the role of investment banks in capital markets?
a. Providing loans to retail investors
b. Managing individual portfolios for high-net-worth individuals
c. Underwriting and distributing securities
d. Regulating the functioning of stock exchanges
