Problem 1. Define the following Terms:
a. Proprietorship; partnership; corporation
b. Limited partnership; limited liability partnership; Professional Corporation
c. Stockholder wealth maximization
d. Money Market; capital market; primary market; secondary market
e. private Markets; public markets; derivatives
f. Investment Banker; financial
g. Mutual Fund; Money Market Fund
h. Physical location exchanges; computer/telephone network
i. Open outcry auction; dealer market; electronic communications network (ECN)
j. Production opportunities; time preferences for consumption
k. Foreign Trade Deficit
Problem 2. What is a firm's fundamental, or intrinsic, value? What might cause a firm's intrinsic value to be different than its actual market value?
Problem 3. Describe the different ways in which capital can be transferred from suppliers of capital to those who are demanding capital
Problem 4. Differentiate between dealer markets and stock markets that have a physical location.