Question

Q. A trading venue that functions like an exchange but does not exercise regulatory authority over its subscribers is known as:

1. a primary market.

2. a private placement.

3. an alternative trading system.

Q. All else being equal, as investors' time horizon increases, their risk tolerance will:

1. decrease.

2. be unchanged.

3. increase.

Q. If an investor exercises warrants, the number of shares outstanding of the issuing company most likely:

1. decreases.

2. remains the same.

3. increases.

Answer 1

Answer:- Option 3: an alternative trading system.

Explanation:- An alternative trading system is a trading venue that functions like an exchange but does not exercise regulatory authority as it is a venue where buy and sell orders of its subscribers are matched.

Answer:- Option 3: increases

Explanation:- All else being equal, as investors' time horizon increases, their risk tolerance will increase. This is because when investors have a longer investment horizon, they generally can take on more risk because they knew that the market has many years to recover in case there is a pullback.

Answer:- Option 3: increases

Explanation:- If an investor exercises warrants, the number of shares outstanding of the issuing company most likely to increase. This is because when the warrants are issued by the company are exercised, then company issues new shares of stock, so the number of outstanding shares increases.