Written Assignment - Markets & Securities
For each item below, select the correct answer from the dropdown box in column C.
1. Classify the following transactions as taking place in either the primary or secondary market:
a. IBM issues $200 million of new common stock.
b. The New Company issues $50 million of common stock in an IPO.
c. IBM sells $5 million of GM preferred stock out of its marketable securities portfolio.
d. The Magellan Fund buys $100 million of previously issued IBM bonds.
e. Prudential Insurance Co. sells $10 million of GM common stock.
2. Classify the following financial instruments as money market securities or capital market securities:
a. Bankers Acceptances
b. Commercial Paper
c. Common Stock
d. Corporate Bonds
e. Mortgages
f. Negotiable Certificates of Deposit
g. Repurchase Agreements
h. U.S. Treasury Bills
i. U.S. Treasury Notes
j. Federal Funds