Financial Market is a market in which financial assets (securities) such as stocks and bon can be purchased or sold. Assess the following statements: 1. The financial markets serve as the mechanism whereby corporations (acting as deficit units) can obtain funds from investors (acting as surplus units). II. Financial institutions serve as intermediaries to connect the investment management activity with the corporate finance activity. I. Once financial instruments such as stocks are issued in primary markets, they are ther traded-that is, repurchased and resold-in secondary markets. IV. Secondary markets help support primary markets because secondary markets reduce Ehe cost of trading the primary market claims O All of the statements are correct. O Only one statement is correct. O Two statements are correct. O Three statements are correct.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Financial Market is a market in which financial assets (securities) such as stocks and bonds
can be purchased or sold. Assess the following statements:
I. The financial markets serve as the mechanism whereby corporations (acting as deficit
units) can obtain funds from investors (acting as surplus units).
II. Financial institutions serve as intermediaries to connect the investment management
activity with the corporate finance activity.
II. Once financial instruments such as stocks are issued in primary markets, they are then
traded-that is, repurchased and resold-in secondary markets.
IV. Secondary markets help support primary markets because secondary markets reduce
the cost of trading the primary market claims
O All of the statements are correct.
O Only one statement is correct.
O Two statements are correct.
Three statements are correct.
Transcribed Image Text:Financial Market is a market in which financial assets (securities) such as stocks and bonds can be purchased or sold. Assess the following statements: I. The financial markets serve as the mechanism whereby corporations (acting as deficit units) can obtain funds from investors (acting as surplus units). II. Financial institutions serve as intermediaries to connect the investment management activity with the corporate finance activity. II. Once financial instruments such as stocks are issued in primary markets, they are then traded-that is, repurchased and resold-in secondary markets. IV. Secondary markets help support primary markets because secondary markets reduce the cost of trading the primary market claims O All of the statements are correct. O Only one statement is correct. O Two statements are correct. Three statements are correct.
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