T or FOrganized security exchanges provide several benefits to both corporations and investors. They (l) provide a continuous market, (2) establish and publicize fair security prices, and (3) help businesses raise new financial capital. Financial intermediary issues its own type of security which is called an indirect security. Securities are first offered for sale in a primary market. These transactions increase the total stock of financial assets in existence in the economy.

Security exchange is defined as an exchange, where traders or stockholders purchase or sell…

Answered: T or F Organized security exchanges…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter1: An Overview Of Financial Management And The Financial Environment

Section: Chapter Questions

Problem 1Q

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T or F

Organized security exchanges provide several benefits to both corporations and investors. They (l) provide a continuous market, (2) establish and publicize fair security prices, and (3) help businesses raise new financial capital.

Financial intermediary issues its own type of security which is called an indirect security.

Securities are first offered for sale in a primary market. These transactions increase the total stock of financial assets in existence in the economy.

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