Summary: Investments And Portfolio Management | 9780071289146 | Zvi Bodie, et al

Read the summary and the most important questions on Investments and portfolio management | 9780071289146 | Zvi Bodie, Alex Kane, Alan J. Marcus.

• 2 Asset classes and Financial Instrument

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• 2.2 The Bond Market

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• What is the bond market?

  longer term borrowing or debt instruments than in the money market

• 3 How Securities are Traded

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• What is a underwriter?

  This is an investment banker which markets public offerings of both stock and bonds to the public.
  

• What is a red herring?

  The preliminary prospectus for a stock issue which includes a statement printed in red stating that the company is not attempting to sell the security before the registration is approved.
  

• What does Rule 144A of the SEC mean?

  This rule allows corporations to make these placements without preparing the extensive and costly registration statements required of a public offering.
  

• Why does it make sense for shelf registration to be limited in time?

  Limited shelf registration was introduced because its cost savings outweighed the disadvantage of slightly less up-to-date disclosures. Allowing unlimited shelf registration would circumvent "blue sky" laws that ensure proper disclosure as the financial circumstances of the firm change over time.
  

• 3.2 How Securities are Traded

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• What is a stop order?

  the trade is not to be executed unless the stock hist a certain price limit. stop-loss orders make sure that the stock is sold if its price falls below a stipulated level. stop-buy orders specify that a stock should be bought when its price rises above a limit.
  

• 3.3 U.S. Securities Markets

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• What is a block transaction?

  transactions exceeding 10,000 shares
  

• 3.8 Regulation of Securities Markets

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• What does the Securities Act of 1933 stand for?

  It requires full idsclosure of relevant information relating to the issue of new securities.
  

• What is the 1934 Securities Exchange Act?

  It established the Securities and Exchange Commission to administer the provisions of the 1933 Act. It also extended the 1933 Act because it required periodic disclosure of relevant financial information by firms with already-issued securities on secondary exchanges.
  

• what is a blue sky law?

  state laws, and called this way because these are intended to give investors a clearer view of investment prospects.