Which of the following statements about financial markets and securities are true?Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange.A corporation acquires new funds only when its securities are sold in the primary market.Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.All of the choices are true.

A financial market is any marketplace where securities are traded, such as the currency market, bond…

Answered: Which of the following statements about…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 18QTD

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Which of the following statements about financial markets and securities are true?

Most common stocks are traded over-the-counter, although the largest corporations have their shares traded at organized stock exchanges such as the Philippine Stock Exchange.
A corporation acquires new funds only when its securities are sold in the primary market.
Money market securities are usually more widely traded than longer-term securities and so tend to be more liquid.
All of the choices are true.

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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