1. Sale of new issues of stock takes place _________________________.
A. in the NASDAQ
B. in the primary market
C. in the NYSE
D. in the secondary market
2. Which of the following is FALSE regarding book and market values?
A. Market value always exceeds the corresponding book value.
B. Book value is an accounting valuation largely based on the historical cost.
C. Financial managers should rely on market values, not book values, when making decisions for the firm's financial management issues.
D. The market value of certain assets is often difficult to determine.