Differentiate between closely held and publicly owned corporations.
Differentiate between primary and secondary markets.
What is an IPO?
What is a Dutch auction? Why is it used?
Would you expect a portfolio that consisted of the S&P 500 stocks to
be more or less risky than a portfolio of Nasdaq stocks?
If we constructed a chart like Figure 5-3 for an average S&P 500
stock, do you think it would show more or less volatility? Explain.
What is the efficient markets hypothesis (EMH)?
What are the differences among the three forms of the EMH: (1) weak
form, (2) semistrong form, and (3) strong form?
What are the implications of the EMH for financial decisions?
What is behavioral finance? What do the new ideas in this area tell
us about the stock market?
