altcoin based on mastercoin discussion (New Topic)

I have some questions for mastercoin, this coin is different from the other altcoin:
1. Is it possible to make a new coin based on mastercoin? either clone the code of mastercoin or create a coin on top of it, as I know, they can let you create new coin based on it.
2.if mastercoin creator can issue their coins, and these coins can be converted back to bitcoin, whether in fact mastercoin is trading based on bitcoin? that means, they separate the bitcoin into small pieces and give the small a nick name?
3. for each transaction in mastercoin and this transaction is added on bitcoin blockchain, I think this transaction is basically trading in bitcoin, correct?
4. is there any materials I can know more about mastercoin?
5. as I know, people can create new coin on top of mastercoin and exchange with mastercoin and bitcoin, is there any example for doing that?

Thanks