Which of the following statements is most correct? The distinguishing feature between spot markets versus futures markets transactions is the maturity of the investments. That is, spot market transactions involve securities that have maturities of less than one year whereas futures markets transactions involve securities with maturities greater than one year. Capital market transactions only include preferred stock and common stock transactions. If General Electric were to issue new stock this year it would be considered a secondary market transaction since the company already has stock outstanding. D. None of the Statements is correct.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 4C: Victoria Company has investments in marketable securities classified as trading and...
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Which of the following statements is most correct?

  1. The distinguishing feature between spot markets versus futures markets transactions is the maturity of the investments. That is, spot market transactions involve securities that have maturities of less than one year whereas futures markets transactions involve securities with maturities greater than one year.
  2. Capital market transactions only include preferred stock and common stock transactions.
  3. If General Electric were to issue new stock this year it would be considered a secondary market transaction since the company already has stock outstanding. D. None of the Statements is correct.
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